2(p) Refinancing
step 1. Standard. Section 1003.2(p) defines a great refinancing while the a close-prevent mortgage loan or an open-avoid line of credit where a separate, dwelling-secured debt obligations joins and you may substitute a preexisting, dwelling-shielded loans responsibility of the same debtor. Except as the demonstrated when you look at the opinion dos(p)-2, if or not a great refinancing provides occurred depends on mention of if, in line with the parties’ price and relevant rules, the initial personal debt obligation could have been met otherwise replaced by the a great the fresh personal debt responsibility. If the modern lien was satisfied is irrelevant. Such:
ii. Another unlock-avoid personal line of credit one touches and you will changes a preexisting finalized-avoid home mortgage are an effective refinancing under 1003.2(p).
iii. But since the revealed when you look at the review dos(p)-dos, another personal debt obligation one renews or modifies the new terms of, but that Find Out More does not satisfy and you will change, an existing financial obligation obligations, isnt a good refinancing less than 1003.2(p).
2. New york State consolidation, expansion, and you will modification plans. In which a transaction is completed pursuant to some other York State combination, extension, and modification agreement which can be categorized given that a supplemental home loan lower than Nyc Tax Rules point 255, in a fashion that the debtor owes less or no financial recording taxation, and you can in which, however for the brand new agreement, the transaction would have fulfilled the term a good refinancing lower than 1003.2(p), the transaction is regarded as an excellent refinancing below 1003.2(p). Pick and comment dos(d)-dos.ii.
3. Existing personal debt duty. A sealed-avoid home loan or an open-avoid line of credit you to definitely joins and you will changes one or more current debt obligations is not a beneficial refinancing under 1003.2(p) unless of course the current loans responsibility (otherwise personal debt) and is actually secure by a dwelling. Like, think that a borrower has actually a preexisting $30,000 signed-end real estate loan and receives another type of $50,000 finalized-prevent real estate loan one to suits and changes the present $29,000 loan. 2(p). Yet not, if for example the debtor gets a different $fifty,000 closed-avoid home loan you to touches and replaces an existing $31,000 loan shielded only because of the your own be sure, the new $50,000 loan isnt a beneficial refinancing less than 1003.2(p). Get a hold of 1003.4(a)(3) and associated responses getting pointers on exactly how to declaration the loan purpose of instance transactions, if they are maybe not if not excluded under 1003.3(c).
A separate signed-prevent mortgage loan one satisfies and you will replaces a minumum of one established closed-prevent mortgages is a refinancing under 1003
cuatro. Same debtor. Point 1003.2(p) brings you to definitely, no matter if the many other standards out-of 1003.2(p) are met, a sealed-prevent real estate loan otherwise an open-avoid line of credit isnt a good refinancing until a similar borrower undertakes both established therefore the the responsibility(s). Around 1003.2(p), brand new same debtor undertakes both established in addition to the new responsibility(s) no matter if singular debtor is the same into the each other obligations. For example, think that an existing finalized-prevent home loan (obligations X) try fulfilled and you can replaced because of the a unique closed-end home loan (responsibility Y). If individuals A beneficial and you may B both are required on duty X, and simply debtor B are motivated towards obligations Y, up coming obligations Y is actually a great refinancing under 1003.2(p), whenever the other requirements out of 1003.2(p) is satisfied, since the borrower B are motivated into the one another purchases. Concurrently, if perhaps debtor Good is compelled toward responsibility X, and just debtor B was obligated to the responsibility Y, upcoming duty Y is not an excellent refinancing under 1003.2(p). Like, assume that two spouses is actually divorcing. If both spouses is required to the obligations X, however, one spouse is actually obligated into the responsibility Y, upcoming responsibility Y try a great refinancing less than 1003.2(p), whenever another requirements out of 1003.2(p) is actually came across. Likewise, if only partner A good is actually required to the obligation X, and only lover B is actually obligated with the obligations Y, following obligation Y is not a refinancing around 1003.2(p). Look for 1003.4(a)(3) and relevant responses to own advice on how to report the loan intent behind eg transactions, when they maybe not otherwise excluded less than 1003.3(c).