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#1664349 - 02/13/12 08:02 PM RESPA
traveler Offline
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Alabama
Loan secured by 2nd mtg on house that is not principal dwelling - purpose to consolidate debt. Is this RESPA?
Last edited by traveler; 02/13/12 08:04 PM.
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#1664352 - 02/13/12 08:19 PM Re: RESPA traveler
raitchjay Online
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If the debt is consumer debt, yes.
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#1664358 - 02/13/12 08:15 PM Re: RESPA traveler
traveler Offline
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Alabama
If the loan was for 1 year - is there a temporary loan exclusion?

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#1664365 - 02/13/12 08:32 PM Re: RESPA traveler
raitchjay Online
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There is a temporary financing exemption, but simply being short term isn't enough. Review 1024.5.
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#1664467 - 02/13/12 10:00 PM Re: RESPA traveler
traveler Offline
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Joined: May 2010
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Alabama
So if we do renew this loan for whatever term they decide I need to treat it as RESPA even though it was not treated as RESPA before (error on bank's part). Just found where the repayment was to come from sale of the house. This doesn't make a difference, does it?
Last edited by traveler; 02/13/12 10:13 PM.
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#1664475 - 02/13/12 10:18 PM Re: RESPA traveler
raitchjay Online
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Assuming we're talking about this house only (and not a bridge loan type situation), then yes, the plan to repay the loan with the sale of the house would not qualify as temporary financing. If the loan comes up for refinancing, yes, i would treat it as RESPA.
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#1664483 - 02/13/12 10:15 PM Re: RESPA traveler
traveler Offline
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Joined: May 2010
Posts: 180
Alabama
Since this is not the principal dwelling, HPML and HOEPA do not apply, correct?

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#1664489 - 02/13/12 10:25 PM Re: RESPA traveler
traveler Offline
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Joined: May 2010
Posts: 180
Alabama
Also, this is not HMDA because of the purpose to consolidate debt, correct.

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#1664492 - 02/13/12 10:42 PM Re: RESPA traveler
raitchjay Online
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Originally Posted By: traveler
Since this is not the principal dwelling, HPML and HOEPA do not apply, correct?


Correct.

Originally Posted By: traveler
Also, this is not HMDA because of the purpose to consolidate debt, correct.


Correct, unless part of the debt that is being consolidated is any dwelling-secured note that is being paid off. Then you would be dealing with a HMDA reportable refinance.
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