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#1935020 - 06/24/14 01:57 PM Would RESPA apply?
gms2013 Offline
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Joined: May 2013
Posts: 76
KY
I have a loan which the borrower lives at the property being refinanced. However, he has no ownership in the property. The parents own the property and will be hypothecating the property for the loan which is to pay bills...Would this loan be subject to RESPA? ROR?

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RESPA
#1935028 - 06/24/14 02:10 PM Re: Would RESPA apply? gms2013
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
RESPA applies to Federally related mortgage loans. Here is the definition.

Federally related mortgage loan means:

(1) Any loan (other than temporary financing, such as a construction loan):

(i) That is secured by a first or subordinate lien on residential real property, including a refinancing of any secured loan on residential real property, upon which there is either:

(A) Located or, following settlement, will be constructed using proceeds of the loan, a structure or structures designed principally for occupancy of from one to four families (including individual units of condominiums and cooperatives and including any related interests, such as a share in the cooperative or right to occupancy of the unit); or

(B) Located or, following settlement, will be placed using proceeds of the loan, a manufactured home;
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#1935045 - 06/24/14 02:36 PM Re: Would RESPA apply? gms2013
gms2013 Offline
Member
Joined: May 2013
Posts: 76
KY
That is what we were thinking...Should the GFE and HUD be to the borrower or the owner of the property?

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#1935056 - 06/24/14 02:59 PM Re: Would RESPA apply? gms2013
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
The borrower. The owner of the property is just a grantor.
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The more you sweat in training, the less you bleed in battle.......

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