The real question is, what can the bank do to you if you legitimately intend to occupy the property and leaseback exceeds 60 days?
(1) Zero likelihood of jail/prosecution, would be really bad publicity, and would make default much more likely. Not what they need right now.
(2) Calling back the loan would be unlikely, banks do not want to foreclose (and have bigger fish to fry right now).
(3) Some sort of warning letter? By which time, the home would be a primary anyway and the violation would be cured.
(4) I suppose they could do a FinCen report and make it harder to get a loan down the line.
