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#1712572 - 06/20/12 08:03 PM Is this loan subject to RESPA
HRH Okie Banker Offline
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Joined: Jan 2003
Posts: 3,070
Oklahoma
Loan to XYZ, Inc. to purchase a 1-to-4 family residence for the company owners primary residence?

I've researched RESPA's 1024.5 and Reg Z 12 CFR 1026.3(a)(1) and it appears to me that this loan would be exempt because loan is not to a natural person. 1024.5 also says "Persons may rely on Regulation Z in determining whether the exemption applies.". If the loan is exempt from Reg Z under the non-natural person exemption wouldn't it be exempt from RESPA too?

Other posts that I've researched here today gives the appearance that the loan isn't exampt from RESPA since this isn't a "business purpose" loan, so I've now started confusing myself. Thanks in advance.
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Lending Compliance
#1712579 - 06/20/12 08:12 PM Re: Is this loan subject to RESPA HRH Okie Banker
raitchjay Online
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OK
1024.5 only references 1026.3(a)(1) as you state. The reference to non-natural persons comes in 1026.3(a)(2), so no, you can't exempt a loan from RESPA based it on it being to a non-natural person....it has to meet the business purpose test.
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#1712582 - 06/20/12 08:14 PM Re: Is this loan subject to RESPA HRH Okie Banker
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Thank you.
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