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ROR Requirement: Renovating A Dwelling

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Question: 
I have a closed-end LOC to purchase and renovate a dwelling loan that has matured. I am doing permanent financing on it with additional funds to complete renovation. Is this a ROR loan or would you consider this type of loan a construction/perm that wouldn't require ROR?
Answer: 

The purchase/renovation loan would be a Residential Mortgage Transaction under Reg. Z but the refinancing of that loan would not meet the definition. Converting a renovation loan to permanent financing is not the same as converting a construction loan to permanent financing.

First published on 08/09/2015

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