Wondering if TRID applies to this scenario: small loan to pay of credit card debt, farm dwelling as collateral/second mtg.(we hold 1st).
Thank you for any input

1. Credit card debt of the individual, I assume. That makes the loan a consumer credit transaction.
2. Sounds like closed-end credit.
3. A farm dwelling sounds like the security is real estate.

How can it not be subject to TRID. Get the Loan Estimate out on time!

Thank you, that was my thought as well. But there is the thought that if a farm is involved it is always considered an Ag loan.

Only if it's primarily for an ag purpose.

I agree. Like John stated - a closed end consumer purpose loan secured by 'dirt' - TRID applies.

Would right of rescission apply?

If they live in the dwelling, yes.

It's all about the purpose of the loan, not the collateral. If Farmer Brown wants to buy land on which there are farm buildings and a residence, if he's buying it for the residence, it's consumer. If he's buying it to operate the farm, with the residence secondary, it's an ag loan. If he's after both the farm and the residence, you've got to decide some other way -- relative importance of farming vs. residence, allocated costs, acreage allocation, etc. -- Or you break it into two loans, one consumer and the other ag.