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#2245728 - 11/20/20 04:02 PM Parents own the land
DoS Offline
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DoS
Joined: Apr 2012
Posts: 264
one state over
Construction loan (temp) (installing modular home) being built on land owned by the parents. Parents will be pledging the land as collateral. I believe that everyone involved (borrowers and parents) gets the CD … does everyone get the LE also? I don't believe rescission applies either, correct?

sometimes the brain stops working ….
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TRID - TILA/RESPA Integrated Disclosures Rule
#2245730 - 11/20/20 04:12 PM Re: Parents own the land DoS
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,247
Galveston, TX
If parents are pledging the land and are not borrowers and there is no right of rescission, then the only thing they need to do is sign the deed of trust or mortgage.
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#2245732 - 11/20/20 04:30 PM Re: Parents own the land DoS
DoS Offline
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DoS
Joined: Apr 2012
Posts: 264
one state over
Thank you, Randy. Do the parents get the LE or CD?
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#2245734 - 11/20/20 04:34 PM Re: Parents own the land DoS
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,247
Galveston, TX
If they are not borrowers or a right of rescission is not involved - no.

Review 1026.17(d): https://www.bankersonline.com/regulations/12-1026-017#17d
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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