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ROR on Home Purchase & Home Improvements

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Question: 
We are lending to a customer who is purchasing her home and doing home improvements all in one closing. Will a right of rescission apply?
Answer: 

No, this is considered a residential mortgage transaction and therefore is exempt from rescission requirements. See 226.2(a)(24) and comment #6 on that section in the Official Staff Commentary.

First published on BankersOnline.com 7/23/07

First published on 07/23/2007

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