As a whole, expansion regarding borrowing from the bank under 1003
Extension of borrowing from the bank
step one. Dwelling-secured. Point 1003.2(d) describes a closed-stop home loan given that an extension off borrowing from the bank that's secure from the an excellent lien on a home and that is maybe not an enthusiastic open-avoid personal line of credit around 1003.2(o). Ergo, eg, that loan to get a home and you will secure just by an excellent personal be sure isnt a sealed-prevent real estate loan because it's maybe not hold-secure.
dos. Lower than 1003.2(d), a home-secured mortgage isnt a sealed-stop mortgage loan except if it involves an extension off borrowing. Such as, certain purchases finished pursuant in order to cost sales agreements, such as specific property contracts, according to things and you can circumstances, might not involve extensions out-of credit helping to make the latest transactions closed-stop mortgage loans. 2(d) is the granting from borrowing from the bank just pursuant to another obligations obligation. Therefore, but due to the fact demonstrated inside the comments dos(d)-dos.we and you can .ii, in the event that a purchase modifies, renews, expands, or amends brand new terms of an existing obligations duty, however the existing obligations obligation is not satisfied and changed, the transaction is not a close-stop mortgage less than 1003.2(d) because there might have been no the fresh extension off borrowing from the bank.Read more
