Source: https://www.consumerfinance.gov/policy-compliance/rulemaking/regulations/1003/2/
Timestamp: 2019-09-20 18:48:48
Document Index: 207029635

Matched Legal Cases: ['§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003', '§ 1003']

(b) Application —
Official interpretation of 2(b) Application Show Hide
See interpretation of 2(b) Application in Supplement I
Official interpretation of 2(c) Branch Office Show Hide
See interpretation of 2(c) Branch Office in Supplement I
Official interpretation of Paragraph 2(c)(1) Show Hide
2. Bank, savings association, or credit unions. A branch office of a bank, savings association, or credit union does not include a loan-production office if the loan-production office is not considered a branch by the Federal or State supervisory authority applicable to that institution. A branch office also does not include the office of an affiliate or of a third party, such as a third-party broker.
See interpretation of Paragraph 2(c)(1) in Supplement I
Official interpretation of Paragraph 2(c)(2) Show Hide
See interpretation of Paragraph 2(c)(2) in Supplement I
Official interpretation of 2(d) Closed-end Mortgage Loan Show Hide
ii. New York State consolidation, extension, and modification agreements. A transaction completed pursuant to a New York State consolidation, extension, and modification agreement and classified as a supplemental mortgage under New York Tax Law section 255, such that the borrower owes reduced or no mortgage recording taxes, is an extension of credit under § 1003.2(d). Comments 2(i)-1, 2(j)-5, and 2(p)-2 clarify whether such transactions are home improvement loans, home purchase loans, or refinancings, respectively. Section 1003.3(c)(13) provides an exclusion from the reporting requirement for a preliminary transaction providing or, in the case of an application, proposing to provide new funds to the borrower in advance of being consolidated within the same calendar year into a supplemental mortgage under New York Tax Law section 255. See comment 3(c)(13)-1 concerning how to report a supplemental mortgage under New York Tax Law section 255 in this situation.
See interpretation of 2(d) Closed-end Mortgage Loan in Supplement I
Official interpretation of 2(f) Dwelling Show Hide
See interpretation of 2(f) Dwelling in Supplement I
Official interpretation of 2(g) Financial Institution Show Hide
3. Merger or acquisition - coverage of surviving or newly formed institution. After a merger or acquisition, the surviving or newly formed institution is a financial institution under § 1003.2(g) if it, considering the combined assets, location, and lending activity of the surviving or newly formed institution and the merged or acquired institutions or acquired branches, satisfies the criteria included in § 1003.2(g). For example, A and B merge. The surviving or newly formed institution meets the loan threshold described in § 1003.2(g)(1)(v)(B) if the surviving or newly formed institution, A, and B originated a combined total of at least 500 open-end lines of credit in each of the two preceding calendar years. Likewise, the surviving or newly formed institution meets the asset-size threshold in § 1003.2(g)(1)(i) if its assets and the combined assets of A and B on December 31 of the preceding calendar year exceeded the threshold described in § 1003.2(g)(1)(i). Comment 2(g)-4 discusses a financial institution's responsibilities during the calendar year of a merger.
4. Merger or acquisition - coverage for calendar year of merger or acquisition. The scenarios described below illustrate a financial institution's responsibilities for the calendar year of a merger or acquisition. For purposes of these illustrations, a “covered institution” means a financial institution, as defined in § 1003.2(g), that is not exempt from reporting under § 1003.3(a), and “an institution that is not covered” means either an institution that is not a financial institution, as defined in § 1003.2(g), or an institution that is exempt from reporting under § 1003.3(a).
6. Branches of foreign banks - treated as banks. A Federal branch or a State-licensed or insured branch of a foreign bank that meets the definition of a “bank” under section 3(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(a)) is a bank for the purposes of § 1003.2(g).
7. Branches and offices of foreign banks and other entities - treated as nondepository financial institutions. A Federal agency, State-licensed agency, State-licensed uninsured branch of a foreign bank, commercial lending company owned or controlled by a foreign bank, or entity operating under section 25 or 25A of the Federal Reserve Act, 12 U.S.C. 601 and 611 (Edge Act and agreement corporations) may not meet the definition of “bank” under the Federal Deposit Insurance Act and may thereby fail to satisfy the definition of a depository financial institution under § 1003.2(g)(1). An entity is nonetheless a financial institution if it meets the definition of nondepository financial institution under § 1003.2(g)(2).
See interpretation of 2(g) Financial Institution in Supplement I
Official interpretation of 2(i) Home Improvement Loan Show Hide
See interpretation of 2(i) Home Improvement Loan in Supplement I
Official interpretation of 2(j) Home Purchase Loan Show Hide
5. Assumptions. Under § 1003.2(j), an assumption is a home purchase loan when an institution enters into a written agreement accepting a new borrower as the obligor on an existing obligation to finance the new borrower's purchase of the dwelling securing the existing obligation, if the resulting obligation is a closed-end mortgage loan or an open-end line of credit. A transaction in which borrower B finances the purchase of borrower A's dwelling by assuming borrower A's existing debt obligation and that is completed pursuant to a New York State consolidation, extension, and modification agreement and is classified as a supplemental mortgage under New York Tax Law section 255, such that the borrower owes reduced or no mortgage recording taxes, is an assumption and a home purchase loan. See comment 2(d)-2.ii. On the other hand, a transaction in which borrower B, a successor-in-interest, assumes borrower A's existing debt obligation only after acquiring title to borrower A's dwelling is not a home purchase loan because borrower B did not assume the debt obligation for the purpose of purchasing a dwelling. See § 1003.4(a)(3) and comment 4(a)(3)-4 for guidance about how to report covered loans that are not home improvement loans, home purchase loans, or refinancings.
See interpretation of 2(j) Home Purchase Loan in Supplement I
Official interpretation of 2(l) Manufactured Home Show Hide
See interpretation of 2(l) Manufactured Home in Supplement I
Official interpretation of 2(m) Metropolitan Statistical Area (MD) or Metropolitan Division (MD). Show Hide
See interpretation of 2(m) Metropolitan Statistical Area (MD) or Metropolitan Division (MD). in Supplement I
Official interpretation of 2(n) Multifamily Dwelling Show Hide
See interpretation of 2(n) Multifamily Dwelling in Supplement I
Official interpretation of 2(o) Open-End Line of Credit Show Hide
See interpretation of 2(o) Open-End Line of Credit in Supplement I
Official interpretation of 2(p) Refinancing Show Hide
4. Same borrower. Section 1003.2(p) provides that, even if all of the other requirements of § 1003.2(p) are met, a closed-end mortgage loan or an open-end line of credit is not a refinancing unless the same borrower undertakes both the existing and the new obligation(s). Under § 1003.2(p), the “same borrower” undertakes both the existing and the new obligation(s) even if only one borrower is the same on both obligations. For example, assume that an existing closed-end mortgage loan (obligation X) is satisfied and replaced by a new closed-end mortgage loan (obligation Y). If borrowers A and B both are obligated on obligation X, and only borrower B is obligated on obligation Y, then obligation Y is a refinancing under § 1003.2(p), assuming the other requirements of § 1003.2(p) are met, because borrower B is obligated on both transactions. On the other hand, if only borrower A is obligated on obligation X, and only borrower B is obligated on obligation Y, then obligation Y is not a refinancing under § 1003.2(p). For example, assume that two spouses are divorcing. If both spouses are obligated on obligation X, but only one spouse is obligated on obligation Y, then obligation Y is a refinancing under § 1003.2(p), assuming the other requirements of § 1003.2(p) are met. On the other hand, if only spouse A is obligated on obligation X, and only spouse B is obligated on obligation Y, then obligation Y is not a refinancing under § 1003.2(p). See § 1003.4(a)(3) and related commentary for guidance about how to report the loan purpose of such transactions, if they are not otherwise excluded under § 1003.3(c).
See interpretation of 2(p) Refinancing in Supplement I
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