2(p) Refinancing

step one. General. Area 1003.2(p) represent good refinancing because a shut-stop mortgage loan or an open-prevent personal line of credit in which a different, dwelling-secure loans obligation satisfies and you can replaces a current, dwelling-secure obligations obligations from the same borrower. Except due to the fact described within the review 2(p)-dos, whether good refinancing have occurred varies according to mention of the whether, according to the parties‘ package and applicable rules, the first debt obligations could have been came across otherwise changed of the an effective brand new personal debt responsibility. Whether the unique lien was met try unimportant. Such as:

ii. An alternative discover-avoid personal line of credit one to matches and you will changes an existing signed-end home loan was a refinancing significantly less than 1003.2(p).

iii. Except once the described for the opinion dos(p)-dos, an alternate personal debt duty you to definitely renews or modifies the brand new terms of, however, that does not fulfill and you may change, a preexisting loans responsibility, isnt a great refinancing significantly less than 1003.2(p).

dos. Nyc Condition combination, extension, and you can modification preparations. Where an exchange is accomplished pursuant to a new York County consolidation, expansion, and you can modification arrangement and that is classified just like the a supplemental financial less than Nyc Income tax Law point 255, in a manner that the brand new borrower owes quicker if any home loan tape taxes, and you may in which, but also for the newest contract, your order will have met the term a refinancing below 1003.2(p), the order is considered an effective refinancing not as much as 1003.2(p). Pick and feedback 2(d)-dos.ii.

step 3. Present debt duty. A shut-avoid real estate loan or an unbarred-end line of credit you to definitely matches and you may substitute a minumum of one current debt burden is not an excellent refinancing lower than 1003.2(p) until current personal debt duty (otherwise obligations) including try secured because of the a dwelling. Instance, believe that a borrower features a preexisting $29,000 signed-stop real estate loan and gets a separate $50,000 signed-stop real estate loan you to suits and you can replaces the present $31,000 loan. 2(p). Although not, when your debtor receives a new $50,000 closed-avoid home mortgage you to satisfies and you may substitute a current $29,000 loan protected simply from the your own make certain, the fresh $fifty,000 mortgage isnt an effective refinancing below 1003.2(p). Pick 1003.4(a)(3) and associated comments getting pointers on exactly how to report the mortgage purpose of like transactions, if they’re maybe not if not excluded around 1003.3(c).

Another type of closed-end home mortgage one satisfies and you can substitute one or more established closed-avoid mortgage loans is actually a great refinancing significantly less than 1003

cuatro. Same debtor. Point 1003.2(p) brings that, even in the event the many other criteria off 1003.2(p) try met, a close-avoid mortgage loan or an open-prevent line of credit isnt good refinancing unless the same debtor undertakes both current and the new responsibility(s). Around 1003.2(p), the exact same borrower undertakes both current as well as the the duty(s) even when only 1 debtor is the identical into the each other personal debt. Including, think that a preexisting finalized-avoid mortgage (responsibility X) was met and you will replaced by another closed-prevent mortgage (obligation Y). When the borrowers An effective and you can B they are both obligated towards the obligations X, and only debtor B are motivated to your obligations Y, upcoming duty Y try a good refinancing less than 1003.2(p), whenever another standards away from 1003.2(p) are came across, once the borrower B try motivated into both transactions. Concurrently, if only borrower A great try compelled to your duty X, and only borrower B is actually required into the responsibility Y, up coming duty Y isnt a great refinancing not as much as 1003.2(p). Including, think that a couple spouses was divorcing. If each other spouses is motivated towards responsibility X, but singular companion try compelled towards obligation Y, after that duty Y are good refinancing below 1003.2(p), and when another conditions from 1003.2(p) are fulfilled. Likewise, online payday loan New Jersey if only spouse A great try motivated on the obligations X, and just companion B try obligated on the obligations Y, up coming obligations Y is not a refinancing less than 1003.2(p). Get a hold of 1003.4(a)(3) and you may relevant opinions to possess guidance on precisely how to statement the borrowed funds purpose of instance deals, when they maybe not otherwise omitted under 1003.3(c).