I can hear the bell ringing but I don't know what church it is... I remember hearing at one seminar that steering customer toward other product or structuring the transaction so it’s not subject to TRID is a violation. I can’t find anything in the final Rule.
Anybody?

§1026.34(b) discusses the evasion of high-cost mortgage requirements and how that works, but I don't know that you'll find anything that definitively talks about evading TRID rules.

How would you evade TRID rules with a consumer loan secured by dirt? You're either removing the dirt collateral (which isn't evasion) or you are making a stretch about the loan being non-consumer purpose.

Need more details.

How would you evade TRID rules with a consumer loan secured by dirt? You're either removing the dirt collateral (which isn't evasion) or you are making a stretch about the loan being non-consumer purpose.

Or structuring it as open-end credit knowing full well additional advances are not contemplated.

Point for Dan. Forgot about the HELOC part.

Example: borrower would like to build a second home (vacation home) and wants to use his commercial building as collateral. Loan officer would like to structure the loan as commercial line of credit. It's not going to be subject to TRID since it's an open end loan, but the consumer purpose remains (construction of a second home).

The loan officer doesn't get to 'structure' a consumer loan as a commercial loan when it clearly isn't.

Loan officer would like to structure the loan as commercial line of credit.

Based on what rationale? Collateral does not dictate the loan's purpose.

The loan's purpose is consumer, no ifs, ands or buts.

I have this question as well, is there an evasion rule on TRID loans. The situation is using a HELOC which is a 10 year interest monthly, balance at maturity loan product to purchase the home instead of a closed end product. Is that considered evasion?

If you contemplate the fact that they will actually pay down and redraw on the line, no. If you don't, then yes.