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#2113644 - 01/10/17 11:34 AM Structuring a loan to avoid issuance of TRID
jdavis Offline
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Registered: 06/30/14
Posts: 6
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?

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TRID - TILA/RESPA Integrated Disclosures Rule
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#2113654 - 01/10/17 12:01 PM Re: Structuring a loan to avoid issuance of TRID [Re: jdavis]
Norman Paperman Offline
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Registered: 08/07/12
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Loc: 36.071672, -93.214366
§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.
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#2113656 - 01/10/17 12:03 PM Re: Structuring a loan to avoid issuance of TRID [Re: jdavis]
Dan Persfull Offline
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Registered: 08/28/02
Posts: 43639
Loc: Bloomington, IN
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.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2113658 - 01/10/17 12:11 PM Re: Structuring a loan to avoid issuance of TRID [Re: jdavis]
Norman Paperman Offline
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Registered: 08/07/12
Posts: 1183
Loc: 36.071672, -93.214366
Point for Dan. Forgot about the HELOC part.
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Maybe you just wanna fly the plane yourself. Well good luck pressing take off, then auto pilot, then land.


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#2114343 - 01/17/17 08:11 AM Re: Structuring a loan to avoid issuance of TRID [Re: jdavis]
jdavis Offline
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Registered: 06/30/14
Posts: 6
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).

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#2114363 - 01/17/17 11:52 AM Re: Structuring a loan to avoid issuance of TRID [Re: jdavis]
RR Joker Online
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Registered: 11/15/02
Posts: 18252
Loc: The Swamp
The loan officer doesn't get to 'structure' a consumer loan as a commercial loan when it clearly isn't.
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#2114383 - 01/17/17 01:15 PM Re: Structuring a loan to avoid issuance of TRID [Re: jdavis]
Dan Persfull Offline
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Registered: 08/28/02
Posts: 43639
Loc: Bloomington, IN
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.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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