Our Loan Officer has made a habit of listing mortgages as additional security on personal loans. Some of these are 6 month personal notes, a couple are installments for vehicles which then also list the mortgage as additional security.

I may be drawing a blank, but I'm looking through Reg Z trying to determine if it would apply in these cases. Can anybody shed some light on this?

First, Reg. Z (Truth In Lending) should already apply in most cases unless these loans are over the threshold ($51,800 this year). I think maybe what you're trying to ask is if RESPA (Reg. X) applies??

Secondly, is the additional collateral an assignment of a mortgage or is the officer actually taking a lien on real property or residences, specifically primary residences? Were they taken as an abundance of caution?

I would definitely verify if flood was pulled on all of those "mortgages" too. If not, you might have more questions than answers. How was the collateral secured? Did you do a deed of trust?

I know this is not a complete answer but I don't think I can give you anymore help w/o more information. I'm sure others will have more feedback for you though.

Personal loan - mortgage as security - yes, Z applies

If it's their PR residence, they would also need ROR, or they don't have the security to begin with. If it's a new loan and they aren't giving ROR, they have given them 3 years to rescind.

Yes, I apologize, should have been more specific. These are recorded mortgages that our bank already has in place. It's more an abundance of caution to add these as additional security.

And yes, more speaking toward RESPA to determine whether they would warrant the GFE, TIL disclosure, etc since they are technically secured by the consumer's dwelling.

Sure it applies, unless there is some other exemption you can meet.

Thanks for the responses. So unless I find another exemption, on these personal notes or vehicle installments, we would be required to provide:

GFE, eTIL, ROR (if applicable), etc.?

Yup, I'd say these would be rescindable and RESPA applicable.

This is only my opinion though.

I know your question was about consumer regs, but you may have another issue. Does your mortgage have a clause that says it secures future indebtedness? Most consumer mortgages only secure the concurrent note plus advances to protect the lien. Your lender is probably wasting paper and ink.