[Anonymous]

When a loan is refinanced where we were the new and original creditor to the same borrower, are these items considered “amounts attributed solely to the cost of refinancing” and thus do not cause rescission to apply?

1. Initial escrow deposit (old loan was not escrowed and new loan is)
2. Paying a portion of the insurance to get it paid up so we can start escrowing (the customer paid quarterly and we are financing the payment for the last quarter)
3. Delinquent taxes that were discovered during the refinance

I have read the commentary and feel like all of these items (with the exception of maybe the delinquent taxes) would not cause the transaction to have rescission as long as the customer was not given any new money, but wanted to be sure.

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