Answer:
Answer by Dan Persfull:This topic has been discussed numerous times in the Lending Forum. If the HELOC is part of the Residential Mortgage Transaction then the portion of the initial advance that is used as part of the purchase money is not subject to the ROR and may be disbursed as consummation. All subsequent advances made on the HELOC will be subject to the ROR.
Answer:
Answer by Kathleen Blanchard:It is possible (and suggested) that the ROR form be amended to accommodate this situation. State that future advances are subject to rescission and that no subsequent advances can take place before the three day rescission period and make sure they don't.
First published on BankersOnline.com 6/04/07
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