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#1838055 - 07/31/13 03:49 PM RESPA & R of R
slicehead Offline
Junior Member
Joined: Jul 2012
Posts: 44
I have a request to refinance a property. Proceeds of the refinance will be used to purchase an investment property. The property being refinanced is a 4 unit property. Our borrower lives in one unit, rents out 2 units and the fourth unit is a retail store. Purpose of the loan is business, therefore, can I correctly assume that RESPA and R of R do not apply?

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Lending Compliance
#1838059 - 07/31/13 03:54 PM Re: RESPA & R of R slicehead
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,530
Bloomington, IN
Proceeds of the refinance will be used to purchase an investment property

The acquisition of a 1-4 non-owner occupied rental property is exempt from Reg. Z and RESPA as a business purpose loan, regardless of the security used.
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The opinions expressed are mine and they are not to be taken as legal advice.

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