A loan was done for the purpose of purchasing a mobile home for investment purposes(no land was purchsed). This loan also refinanced a mobile loan (no land) which is the principal dwelling of the borrower. We are taking both mobile homes as collateral. We have a first lien on both mobile homes. Does HOEPA apply? Does the borrower need to sign a Servicing Transfer Disclosure?

Servicing Disclosure: RESPA doesn't apply to this since you have no land. Second, the new rules do not require this disclosure to be signed (or the present law).

HOEPA: What do you mean by "investment purposes"? If they are going to rent the MH out, TIL does not apply. Therefore, HOEPA doesn't apply.

However, the term "investment purposes" can mean lots of different things, so it would be good for you to clarify.

They purchased the mobile home for their daughter. The daughter is supposed to pay rent to her dad. The dad will make the loan payment at the bank.

I would call that a rental. Therefore, it is not subject to TIL.

I'm still confused. The loan is also secured by their primary residence so shouldn't HOEPA apply? HOEPA doesn't apply because the purpose of the loan is to purchase investment property?

Correct, HOEPA only applies to "consumer credit transactions". If you have 100 rentals or 1, its still business purposes.

ArrowHead is correct. If TIL doesn't apply, then HOEPA doesn't apply. HOEPA is a subsection of Reg Z.