We have a loan that I am in question on whether or not it is a true bridge loan or not. The officer put on the memo it is a 6 month single pay. After further questions, he said we would be financing the difference of the two after the sale of the old home. I was under the understanding that a loan is considered a bridge loan if they are making interest payments? Is a single pay a bridge loan? If so, do we not do RESPA docs until the funding of the perm? Under the new rules, I thought we gave the RESPA docs at the time of the first "bridge" loan? Please help us understand this better!

Higher Priced Mortgage loans fall under Regulation Z. Here is the rule that identifies loans that are not considered Higher Priced Mortgage Loans:

Sec. 226.35

(3) Notwithstanding paragraph (a)(1) of this section, the term ``higher-priced mortgage loan'' does not include a transaction to finance the initial construction of a dwelling, a temporary or ``bridge'' loan with a term of twelve months or less, such as a loan to purchase a new dwelling where the consumer plans to sell a current dwelling within twelve months, a reverse-mortgage transaction subject to Sec. 226.33, or a home equity line of credit subject to Sec. 226.5b.

From what you have described, I would consider the loan a temporary or bridge loan.

Thank you Irishguy!