[Anonymous]

Two existing loans (in house) secured by a 2nd mortgage on a second residence are being combined into one loan under the 2nd mortgage. Would the TRID purpose be refinance or home equity?

Thanks!

[rcooper]

Just from the information you’ve provided I am leaning toward refinancing as the purpose. But you should look to the discussion on what constitutes a refinancing under 1026.20, and keep in mind that it doesn’t have to be the same creditor for purposes of 1026.37. (See commentary below.)

Comment 37(a)(9)(2):Refinance coverage. The disclosure requirements under § 1026.37(a)(9)(ii) apply to credit transactions that meet the definition of a refinancing under § 1026.20(a) but without regard to whether they are made by a creditor, holder, or servicer of the existing obligation. Section 1026.20(a) applies only to refinancings undertaken by the original creditor or a holder or servicer of the original debt. See comment 20(a)-5.

[Author]

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