Truth in Lending: 10.2.4.2 Adding a Security Interest to Existing Transaction; Open-End Credit
For purposes of the rescission rule, the term “transaction” encompasses the addition of a security interest in the consumer’s principal dwelling to an existing transaction.74 However, only the addition of the security interest is rescindable, not the underlying transaction.75 If a security interest in the consumer’s principal dwelling is added to a transaction that was previously exempt from Regulation Z (because it was credit over $25,00076