If we make a loan to a trust (special needs trust) where the purpose is to allow the benefactor to buy a car that has been modified to adapt to their disability, is this consumer or commercial.

The borrower is the trust. But it appears to be consumer purpose. Our loan doc software turns this to a commercial loan and I can't get a Truth-in-Lending.

Would you treat this as commercial or consumer?

Thanks

Well, the loan is consumer purpose, but the system is exempting it from Reg.Z under the "credit extension to other than a natural person" business exemption- 1026.3(a)(2).

I would be careful though if the trust is revocable as the line between natural and other than nautral becomes very blurred.

Although this loan doesn't sound like a real estate transaction, don't forget RESPA does not include this other than natural person exemption. So you can have a RESPA applicable loan while being exempt from Reg.Z