Can an Executive receive a loan from a subsidiary mortgage company that is sold to an investor?

Is the loan??

(2) In any amount to finance or refinance the purchase, construction, maintenance, or improvement of a residence of the executive officer, provided:

(i) The extension of credit is secured by a first lien on the residence and the residence is owned (or expected to be owned after the extension of credit) by the executive officer; and

(ii) In the case of a refinancing, that only the amount thereof used to repay the original extension of credit, together with the closing costs of the refinancing, and any additional amount thereof used for any of the purposes enumerated in this paragraph (c)(2), are included within this category of credit;

If not, then it would fall under the $100,000 other category. Sale into the secondary is not a consideration because it will hit the affiliate's books for a short period of time.

Refinance of a second home

I have questions when it comes to Regulation 215.5 Additional restrictions on loans to executive officers of member banks.
The following restrictions on extensions of credit by a member bank to any of its executive officers apply in addition to any restrictions on extensions of credit by a member bank to insiders of itself of its affiliates set forth elsewhere in this part. The restrictions of this section apply only to executive officers of the member bank and not to executive officers of its affiliates.

3--1096

REPORTS OF EXTENSION OF CREDIT--Loans by Wholly Owned Subsidiaries

Loans by a wholly owned subsidiary of a member bank to an executive officer of the bank can and should be attributed to the bank for the purposes of Regulation O. STAFF OP. of April 1, 1969.

Authority: FRA § 22(g), 12 USC 375a.

Thanks