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#2103475 - 10/18/16 06:31 PM TRID Purpose?
iheartcompliance Offline
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Joined: Jan 2016
Posts: 239
Any suggestions on the purpose of this loan?

Dad purchased dwelling for daughter and son-in-law (no lien, wrote a check)
Daughter wants a loan from us to pay dad back.
The deed is in the daughter and son-in-laws name.

Should the property be deeded to the dad and then purchased from the dad?
Should we consider this as a Home Equity for TRID and just use the cash out to pay back dad?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2103482 - 10/18/16 06:49 PM Re: TRID Purpose? iheartcompliance
TMatt87 Offline
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TMatt87
Joined: May 2011
Posts: 2,019
Idaho
I agree it would be a home equity purpose if the dwelling is already in the daughter's name (no transfer of title).
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#2103483 - 10/18/16 06:54 PM Re: TRID Purpose? iheartcompliance
Compliance NABW Offline
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Joined: Oct 2015
Posts: 1,671
Yep, Home Equity. It is not a Purchase, Refinance, or Construction for TRID Purposes.

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#2103488 - 10/18/16 07:06 PM Re: TRID Purpose? iheartcompliance
rlcarey Offline
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rlcarey
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Posts: 85,002
Galveston, TX

Should the property be deeded to the dad and then purchased from the dad?

Such a suggestion should never come out of a banker's mouth. How property is titled or transferred is up to the individual and their attorney. You deal with what you are given.
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#2103489 - 10/18/16 07:12 PM Re: TRID Purpose? iheartcompliance
iheartcompliance Offline
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Posts: 239
You're right; we deal with what we are given. They asked if they should purchase it from their dad in that particular scenario. I did not feel comfortable giving suggestions, which is why I came to this forum.....

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#2103496 - 10/18/16 07:29 PM Re: TRID Purpose? iheartcompliance
rlcarey Offline
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rlcarey
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Posts: 85,002
Galveston, TX
Well all is good then. Those questions should always be deferred to their own attorney or financial advisor. You would be surprised at what I have seen banks suggest to customers over the years. shocked
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#2103521 - 10/18/16 08:21 PM Re: TRID Purpose? rlcarey
JC (Darth HMDA) Offline
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JC (Darth HMDA)
Joined: Dec 2013
Posts: 1,399
CA
Originally Posted By rlcarey
Well all is good then. Those questions should always be deferred to their own attorney or financial advisor. You would be surprised at what I have seen banks suggest to customers over the years. shocked


I wouldn't be surprised. You should publish a book Randy. Bet it would have some great face-palm moment laughs smile
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#2103649 - 10/19/16 02:28 PM Re: TRID Purpose? iheartcompliance
iheartcompliance Offline
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Joined: Jan 2016
Posts: 239
There is apparently a "note" drawn up by the dad. He may also consider filing a mortgage prepared by an attorney. If this is the case, we would call this a refinance instead of a home equity, correct?

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#2103650 - 10/19/16 02:30 PM Re: TRID Purpose? iheartcompliance
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 85,002
Galveston, TX
If it is paying off an existing obligation, it is a refinance. Whether a mortgage was filed or not, is not a determining factor.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2103740 - 10/19/16 06:20 PM Re: TRID Purpose? iheartcompliance
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Clarification -- It would be a refinance if it is paying off an existing obligation that is secured by the property that will secure the loan being applied for, whether the mortgage deed securing the existing obligation was filed/recorded or not.
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