A “residential mortgage transaction” is defined in §1026.2(a)(24) as …a transaction in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained in the consumer's principal dwelling to finance the acquisition or initial construction of that dwelling. This is an important term to understand because a number of compliance requirements in Truth in Lending can be triggered by making a residential mortgage transaction. One of those is when the right of rescission applies.
Kevin explains more in the video.
Published 2026/04/24