4000 - Advisory Opinions
FDIC Will Accept Continuity of Loan Purpose Where Loan Refinances Another Loan Qualifying as a "Home Residence Loan"
July 8, 1992
Pamela E.F. LeCren, Counsel
This letter will confirm that the FDIC will treat a loan which refinances a loan that qualifies as a "home residence loan" for the purposes of the new loan limits on executive officers (See recently amended § 337.3 of the FDIC's regulations) as a "home residence loan'' assuming that all of the other criteria for a "home residence loan" are met. This is to say that, in your words, the FDIC will accept the continuity of the loan purpose.