Skip to content
BOL Conferences Top Gun 23
Thread Options
#1609079 - 09/27/11 01:40 PM Balloons and RESPA
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
Is there a final word on if a balloon loan qualifies for RESPA?

Thanks

Return to Top
Lending Compliance
#1609084 - 09/27/11 01:46 PM Re: Balloons and RESPA mdog76
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
A balloon loan, if for a consumer purpose and is secured by 1-4 residential real property, is and always has been subject to RESPA.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1609098 - 09/27/11 01:55 PM Re: Balloons and RESPA Dan Persfull
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
I misunderstood the question someone wanted to know. Is it o.k. to do a balloon loan on RESPA? If so, is there a prefered term?

Thanks.

Return to Top
#1609104 - 09/27/11 02:03 PM Re: Balloons and RESPA mdog76
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
I'm still not sure what is being asked. If the loan is a consumer purpose loan secured by a 1-4 residential real property you have no choice but to provide the required RESPA disclosures.

Are you maybe referring to the limitations for balloon loans in Reg Z in relation to HOEPA loans and HPMLs? If so review 226.35 and 226.32 and their Commentaries.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top

Moderator:  Andy_Z