Answer:
The transaction meets the definition of a residential mortgage transaction found in Reg Z 1026.2(a)(24) and the TILA 103(w). Rescission does not apply.
First published on BankersOnline.com 8/20/12
Reg Z TIL Right of Rescission-Spec Home
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Question:
We have a customer that is buying a spec home from a builder. The customer has moved into the spec home prior to the loan being closed. Does this loan require that we give a Right of Rescission to the borrower? Our compliance consultant company says NO but I have an employee at an IBA seminar today that is saying per Reg Z says No but Truth in Lending Law says Yes so we should do a rescission.
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