Skip to content

Time Limit on the Construction Phase?

Answered by: 

Is there a time limit on the construction phase of a one-time close construction-perm loan? In the old days, Reg Z limited the construction phase to 12 months but I'm unsure what apples now.

To the best of my knowledge Reg. Z never restricted the construction phases's term. It's just that if the construction phase exceeds 12 months then it does not qualify for the exemption in 1026.43.

(a) Scope. This section applies to any consumer credit transaction that is secured by a dwelling, as defined in § 1026.2(a)(19), including any real property attached to a dwelling, other than:

(iii) A construction phase of 12 months or less of a construction-to-permanent loan;

First published on 09/20/2020

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics