Effect of Acreage Size on Rescission Right

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Question:

The borrower's home and 150 acres land are being mortgaged in connection with a loan for home improvement. Since it's over 25 acres, does the right of rescission apply?

Answer:

Right of rescission is a requirement of Regulation Z (Truth in Lending). The 25 acre exemption that you are thinking of is a RESPA exemption and has nothing to do with Reg Z. Therefore, the RofR does apply to your situation.

First published on BankersOnline.com 2/23/04