Questions and Answers

The rescission rules of Regulation Z apply if the loan is for a consumer purpose (i.e., Regulation Z applies to the loan), the loan is secured by the consumer’s principal dwelling, and no exemptions from the rescission rule apply.

Your question seems to be: “Can a floating home be the consumer’s principal dwelling?” The answer is “yes.”

First, the definition of dwelling reads: “Dwelling means a residential structure that contains 1 to 4 units, whether or not that structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home, and trailer, if it is used as a residence.” (12 CFR 226.2(a)(20))

Second, the Commentary to this definition reads: “Mobile homes, boats, and trailers are dwellings if they are in fact used as residences, just as are condominium and cooperative units. Recreational vehicles, campers, and the like not used as residences are not dwellings.” Commentary, Section 2(a)(19)-2

Finally, the Commentary to the rescission rules states: “For example, a transaction secured by a mobile home, trailer, or houseboat used as the consumer's principal dwelling may be rescindable.” Commentary, Section 23(a)-3.