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#1647390 - 01/06/12 06:05 PM consumer primary residence in workout
Chocaholic Offline
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Joined: Aug 2005
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Northwest
Are there any rules that say consumer disclosure rules do not apply in a workout situation.. short sale... For example, RESPA, TIL do not apply, or tolerances do not apply. I cannot find anything in state law... and federal laws appear to be silent... ( long shot I know).

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Lending Compliance
#1647395 - 01/06/12 06:08 PM Re: consumer primary residence in workout Chocaholic
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Do you mean for an applicant to borrower to purchase a property in a short sale? No exemptions in that case.
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#1647469 - 01/06/12 07:03 PM Re: consumer primary residence in workout Kathleen O. Blanchard
Chocaholic Offline
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Joined: Aug 2005
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Northwest
No, they are selling property they own & have a loan against (in a short sale) and substituting other collateral (their current primary residence).. it is this transaction I was asking about... no purchase involved

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#1647757 - 01/07/12 12:40 AM Re: consumer primary residence in workout Chocaholic
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
The subsequent disclosure rules for Reg Z contain an exemption for refinancings in a workout.

http://www.bankersonline.com/regs/226/226-20.html

and the commentary

http://www.bankersonline.com/regs/226/suppi226-20.html
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#1648044 - 01/09/12 05:23 PM Re: consumer primary residence in workout Kathleen O. Blanchard
Chocaholic Offline
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Joined: Aug 2005
Posts: 443
Northwest
Thank you!

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