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The SAFE Act's scope includes residential mortgage loans secured by a dwelling. Which of the following would NOT fall under this definition?

Correct Answer

C) A loan secured by vacant land intended for future home construction

The SAFE Act definition of residential mortgage loan requires the security to be a dwelling. Vacant land, even if intended for future construction, does not constitute a dwelling under the Act. The property must have an existing structure designed for occupancy.

Answer Options
A
A loan secured by a manufactured home permanently affixed to land
B
A loan secured by a condominium unit used as a vacation home
C
A loan secured by vacant land intended for future home construction
D
A loan secured by a single-family rental property

Why This Is the Correct Answer

The SAFE Act definition of residential mortgage loan requires the security to be a dwelling. Vacant land, even if intended for future construction, does not constitute a dwelling under the Act. The property must have an existing structure designed for occupancy.

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