We are making a consumer loan for expenses. The loan will be secured by the primary dwelling of the borrower's relative. Do we have to provide early RESPA and TIL disclosures on the loan to the borrwer?

Yes, if it's personal purpose. I put that in an "other" category and disclose it the same as if it was a secondary home.

To clarify the owner of the home is not signing on the loan only putting up the collateral in a guarantor capacity.

The loan is a consumer purpose loan secured by a 1-4 family property. It is not exempt from the disclosure requirements because the property owner is not a borrower. Also since it is the person's primary residence they must receive the ROR and all material disclosures.

Thanks for that catch, Dan...my mind totally skipped the PR part of that scenario.

So looking at the early disclosure requirement we don't need to concern ourselves with the term of the loan correct?

You will need to be more specific with your question, Lis..."term" is too general, really. You can have a short-term loan that is not temporary, and you can have a short-term loan that is temporary, depending on the payout of that loan...is that what you are really asking about?

The term of the loan is 6 months. After the 6 months the loan will be paid off. In some situations the loan may be rolled into a longer installment loan. So, do we question the payout of the loan in determining if early disclosures are required?

If so, where in the regulation does it say this?

yes. The first situation you described is a short-term loan. The second appears to be "temporary".

Temporary is considered to be self-explanatory, meaning that it's intention is temporary in nature and will be paid out by longer-term financing.

A special type of temporary financing is a bridge loan whereby you are bridging the gap in financing of a new home with a temporary loan to be replaced with long-term financing usually once the current home is sold.

Yes, I understand about the temporary thing...it's determining if early disclousures for MDIA need to be given if the loan is considered temporary.

Okay, well, RESPA exempts true temporary financing, so you don't have early disclosures.

So, wouldn't Reg Z still play a part in this requiring early truth in lending or is that exempt as well because the loan is exempt from RESPA?