Rescission Requirements For A Lot Loan (With A Mobile Home)

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Question:

If you are making a loan on property with a mobile home, <i>using only the land </i>(no interest in the mobile home) and the customer lives in the mobile home, is a rescission required?

Answer:

Rescission is not required for the loan you have described. Regulation Z states rescission is required for "a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling". You can find this section of the reg at http://www.bankersonline.com/regs/226/22623.html.

First published on BankersOnline.com 2/11/02