We have pulled out a few of our more "unique" consumer purpose loans done on the commercial side (keep reading please) to aid in training the commercial lenders on TRID applicability and how they just need to send the loans over to retail.

Here is the scenario that has us a little baffled:

Personal loan unsecured but has the guarantee of the business (owned by the borrower) which is secured by property-which happens to be the personal residence of the borrower (not the Inc.)

So the guarantee is secured by property and the loan has the guarantee but is an unsecured loan? Is this TRID applicable? I would say yes because they can call it unsecured all they want-but it's secured (ultimately) by property. Obviously there is disagreement on this...the flip side says that because it's a business pledging it to secure the guarantee and it's not securing the loan but the guarantee...

The loan is not secured by the property, the guaranty is. The loan IMO would not be subject to TRID.

Thanks Dan!

Would the same hold true (i.e., TRID does NOT apply) to an unsecured commercial loan where we will be recording a Deed of Trust to secure the guaranty of the owner (i.e., secured by guarantor's dwelling). I'm thinking that the loan itself is not subject to Reg Z therefore TRID would NOT apply at all.

An unsecured commercial loan is exempt from all of Regulation Z.