OK, I am thinking this just might be lenders way to get around providing required HELOC disclosures. The loan is for personal use, secured by primary residence, occupancy statement provided by borrowers, but no " your Home is on the line" or other HELOC related disclosures provided..
If it is secured by P/R must it be HELOC?

What if the term is 1 year ? What if they renew this loan for another year at maturity?

Taken from Regulation Z:

Sec. 226.5b Requirements for home equity plans.

The requirements of this section apply to open-end credit plans secured by the consumer's dwelling. For purposes of this section, an annual percentage rate is the annual percentage rate corresponding to the periodic rate as determined under Sec. 226.14(b).

A HELOC is an open-end credit plan secured by the consumer's dwelling. Period. If it meets this definition it's a HELOC.

Thank you! My thoughts too, but sometimes you just second guess yourself!

Don't worry - I've been in compliance since 1994 and I second guess myself all of the time.

Also note the above cite states secured by the consumer's dwelling. You will notice the word primary is not included in that statement.

If the consumer uses a 1-4 rental to secure a consumer purpose open-end credit then 226.5b applies. So don't let the LO try to skirt the issue by claiming the dwelling is non-owner occupied.

Thanks for all your help!