2(p) Refinancing
step one. Standard. Section 1003.2(p) describes good refinancing once the a closed-end real estate loan or an unbarred-prevent personal line of credit where a separate, dwelling-protected debt duty suits and changes a preexisting, dwelling-safeguarded debt obligation of the same debtor. But just like the revealed for the remark 2(p)-2, whether or not a great refinancing has actually took place relies upon reference to whether, in accordance with the parties’ contract and you can applicable law, the first personal debt responsibility has been met otherwise replaced from the a beneficial the new debt obligation. Whether or not the amazing lien try satisfied try unimportant. Eg:
ii. Another type of unlock-stop line of credit that meets and changes a preexisting closed-stop home loan was a great refinancing around 1003.2(p).
iii. Except since demonstrated in the opinion 2(p)-dos, another type of obligations responsibility you to renews or modifies the regards to, but that will not meet and you can replace, a preexisting debt duty, is not a good refinancing not as much as 1003.2(p).
dos. Nyc Condition combination, expansion, and you will amendment plans. In which a deal is done pursuant to a new York Condition consolidation, extension, and you can modification agreement that’s categorized given that an extra financial less than Nyc Tax Legislation point 255, in a manner that new debtor owes faster or no home loan tape taxes, and in which, but for the latest agreement, the order will have satisfied the definition of a great refinancing not as much as 1003.2(p), the order represents an effective refinancing lower than 1003.2(p). Discover and remark 2(d)-dos.ii.
3. Existing debt obligation. A shut-stop home mortgage or an open-end personal line of credit you to touches and you can replaces a minumum of one existing debt burden is not good refinancing significantly less than 1003.2(p) unless the existing financial obligation duty (or obligations) plus try secured from the a home. Particularly, believe that a borrower possess a current $29,000 closed-prevent mortgage loan and receives a new $fifty,000 finalized-stop home mortgage one to meets and replaces the present $30,000 mortgage. 2(p). Yet not, in the event the debtor gets a different sort of $fifty,000 closed-avoid mortgage one matches and you will replaces a preexisting $29,000 mortgage secured merely of the your own ensure, the newest $fifty,000 loan is not an excellent refinancing significantly less than 1003.2(p). Find 1003.4(a)(3) and you will relevant remarks to have guidance about how to declaration the loan aim of eg transactions, if they’re maybe not if not omitted not as much as 1003.3(c).
Another signed-prevent home mortgage you to satisfies and you can changes no less than one current closed-end mortgages is actually a refinancing around 1003
cuatro. Same borrower. Section 1003.2(p) provides you to definitely, even though all of the other conditions away from 1003.2(p) try came across, a sealed-end mortgage otherwise an open-avoid personal line of credit is not a refinancing unless a similar borrower undertakes both the current while the the latest obligations(s). Less than 1003.2(p), the newest exact same debtor undertakes both the established and also the the fresh new obligations(s) regardless of if one debtor is the same for the one another financial obligation. Such as for instance, think that a current finalized-avoid mortgage loan (obligation X) try satisfied and you will changed because of the another signed-stop home loan (obligation Y). In the event the individuals A great and you may B they are both motivated into the duty X, and just borrower B are required to the duty Y, following duty Y try a great refinancing less than 1003.2(p), of course, if one other requirements out-of 1003.2(p) try met, as the debtor B is obligated on the one another purchases. In addition, if only debtor A is actually obligated into obligations X, and only debtor B was obligated towards the responsibility Y, then obligations Y is not a beneficial refinancing not as much as 1003.2(p). Eg, assume that one or two spouses is divorcing. In the event that one another partners is motivated on the obligation X, however, only 1 partner was obligated toward obligations Y, next obligations Y try a great refinancing significantly less than 1003.2(p), of course, if another conditions off 1003.2(p) is came across. At exactly the same time, if perhaps lover Good are motivated toward obligations X, and just companion B are required with the responsibility Y, payday loans Wisconsin upcoming responsibility Y is not an excellent refinancing around 1003.2(p). Discover 1003.4(a)(3) and you may related responses getting pointers about how to report the mortgage reason for such as for instance deals, if they are perhaps not or even omitted not as much as 1003.3(c).