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#2020674 - 06/16/15 03:42 PM Est. Property Value
Dodge Offline
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Joined: Mar 2010
Posts: 241
If the loan is secured by multiple properties on a Home Equity transaction, the estimated value field on the Loan Estimate will be the sum of each property est. value?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2021436 - 06/19/15 02:44 AM Re: Est. Property Value Dodge
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,637
Galveston, TX
Where more than one property secures the credit transaction, §1026.37(a)(6) requires disclosure of all properties

In transactions where there is no seller, such as in a refinancing, § 1026.37(a)(7)(ii) requires the creditor to disclose the estimated value of the property identified in § 1026.37(a)(6) at the time the disclosure is issued to the consumer.

So the answer is yes, it would be the sum total of all properties identified.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2021454 - 06/19/15 12:35 PM Re: Est. Property Value Dodge
Custard Offline
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Joined: Apr 2011
Posts: 11
In the case of a swing/bridge loan where the current primary and the new property being purchased are held as collateral, I believe we would list the purpose in relation to the first property listed on the LE. So if we list the new property first and the purpose is then a purchase, we would state the sale price of the new property only, correct?
But if we list the current primary first then the purpose is a home equity and we would then state the estimated value of the combined properties, correct?

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#2021473 - 06/19/15 01:22 PM Re: Est. Property Value Dodge
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,637
Galveston, TX
I'm not sure you have an option in the purchase money transaction:

(9) Purpose. The consumer's intended use for the credit, labeled “Purpose,” using one of the following terms:

(i) Purchase. If the credit is to finance the acquisition of the property identified in paragraph (a)(6) of this section, the creditor shall disclose that the loan is for a “Purchase.”

I would think that this would indicate that the first property listed in (a)(6) would be the property that is being purchased. Additional properties would be listed secondarily. It would also require you to only list the sales price.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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