Typically, expansion out of borrowing not as much as 1003
Expansion off borrowing
1. Dwelling-covered. Area 1003.2(d) represent a shut-stop mortgage due to the fact an expansion away from borrowing which is covered from the good lien on the a dwelling that's not a keen open-end line of credit less than 1003.2(o). Hence, eg, that loan to shop for a dwelling and secure simply because of the a great individual make certain is not a close-prevent mortgage loan because it is perhaps not dwelling-safeguarded.
2. Less than 1003.2(d), a dwelling-covered loan isnt a sealed-stop mortgage loan unless it requires an expansion away from borrowing from the bank. For example, some transactions complete pursuant to fees transformation agreements, such as for instance some house deals, according to situations and you will factors, might not cover extensions out-of borrowing from the bank leaving brand new purchases closed-stop mortgage loans. 2(d) refers to the giving from credit only pursuant to a new loans responsibility. Hence, except once the demonstrated during the statements 2(d)-dos.i and you will .ii, if a deal modifies, renews, stretches, or amends the newest regards to a preexisting financial obligation duty, nevertheless present personal debt duty isnt fulfilled and replaced, the transaction isnt a shut-prevent real estate loan around 1003.2(d) since there has been no the fresh new expansion of borrowing. The word expansion away from credit ergo is defined in different ways significantly less than Controls C than simply significantly less than Regulation B, a dozen CFR region 1002.
