Loan to an entity, cash out refi, more than half of the funds to pay off a divorce settlement, the remaining to refinance the existing loan and for repairs on a seven unit rental property with is to secure the loan.

Even though the loan is to the entity, would this be consumer purpose since the majority of the funds are being used in a personal matter, or not based on the borrower being the entity and the collateral being a multifamily?

Loan made in name of entity, business purpose.

And this for more info. https://www.bankersonline.com/forum/ubbt...rue#Post2170683

Although it's unusual, a loan to an entity can be for a consumer purpose. For example, there's a popular trend toward holding personal residences in an LLC rather than directly or in a trust. There are pros and cons of that strategy, although it is being pushed by some attorneys. And it can result in a mortgage transaction that is not subject to Regulation Z (because it's a loan to an entity) but is subject to RESPA (because it's for personal, family or household purposes).

Loan funds partially for personal/consumer use - loan is consumer purpose
But:
Loan to entity - exempt from TILA
Loan secured by multifamily (not 1-4 family residence) - exempt from RESPA