Security Interest Description for Construction

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Question:

I have an existing mortgage on land. We are disclosing a construction loan. Should the security interest description in the fed box show purchase money AND real estate or simply real estate and does that really matter. The assumption clause is there either way.

Answer:

Section 1026.18(m) allows much flexibility. One way to disclose it would be "the home you are building at 123 Yourstreet."

First published on BankersOnline.com 3/25/13