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#1989591 - 01/20/15 02:27 PM Earlies needed?
Banker57 Offline
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Joined: Jul 2010
Posts: 439
Minnesota
Are early disclosures needed for a personal loan to purchase a home, but using a commercial rental property as collateral? Single pay, 12 month note.

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Lending Compliance
#1989663 - 01/20/15 04:21 PM Re: Earlies needed? Banker57
John Burnett Online
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John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
Under current rules, no, because the loan would not be subject to RESPA and would not be secured by the consumer's dwelling.

But if an application for such a loan is received on or after August 1, 2015, the consumer purpose and the fact that it would be secured by real estate would make the loan subject to the TILA/RESPA Integrated Disclosures (TRID) rules which call for a Loan Estimate and Closing Disclosures.
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John S. Burnett
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#1989671 - 01/20/15 04:44 PM Re: Earlies needed? Banker57
RR Joker Offline
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RR Joker
Joined: Nov 2002
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The Swamp
Maybe you need to define "commercial rental property' because if it's a dwelling-type rental, it would be subject to disclosure unless it falls in a temporary category.
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#1989729 - 01/20/15 06:58 PM Re: Earlies needed? Banker57
John Burnett Online
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John Burnett
Joined: Oct 2000
Posts: 39,793
Cape Cod
Good point. I was thinking "commercial rental property" was retail or office space. But of course it could be a 1-4 family dwelling
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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