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Interesting article, thanks for linking.

The home equity lines of credit exemption will also encourage lenders to offer hazardous high-debt-to-income ratio, home equity lines of credit first mortgages.

My fallback position when we go to sell our house would be to take back a loan instead of the buyers getting a mortgage. In the past you have indicated that this could be fraught with dangers for us, and that our preferred interest only 5 year balloon private mortgage that we have used in the past to both buy and sell, would have repercussions. But it sounds as though we could give a line of credit, and be exempt from all this new regulation. We could charge an increasing level of interest over time, giving the motivation needed to pay off the loan or the income required for us not to care if it is paid off.

Have I interpreted this right?

whose first preference is being paid in full upon sale, but willing and able to think outside the box if getting a mortgage is too hard
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