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Does Rescission Apply to Pending Loan?

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Question: 
We have a consumer real estate construction to permanent loan pending. Does rescission apply?
Answer: 

An RMT is not subject to the right of rescission:

Official Interpretation

2(a)(24) Residential Mortgage Transaction

4. Construction financing. If a transaction meets the definition of a residential mortgage transaction and the creditor chooses to disclose it as several transactions under ยง1026.17(c)(6), each one is considered to be a residential mortgage transaction, even if different creditors are involved.

First published on 01/05/2020

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