Extension off borrowing

step one. Dwelling-shielded. Part 1003.2(d) defines a closed-prevent home mortgage given that an extension regarding credit that is secured by the a lien towards the a home and that’s maybe not an open-avoid credit line under 1003.2(o). Ergo, like, a loan buying a dwelling and you may secured merely because of the a beneficial personal be sure isnt a shut-prevent mortgage because it’s perhaps not hold-protected.

2. Not as much as 1003.2(d), a dwelling-protected loan isnt a sealed-stop home mortgage unless it requires an expansion away from borrowing. Instance, some transactions complete pursuant in order to cost transformation agreements, for example specific land deals, with respect to the affairs and you may issues, may or may not cover extensions off borrowing rendering the fresh transactions closed-stop mortgage loans. 2(d) refers to the giving off credit simply pursuant to some other financial obligation responsibility. Read More