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#2248708 - 02/04/21 07:44 PM Opinion needed on Leading required disclosures
HMDA GIRL Offline
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Joined: Aug 2013
Posts: 125
Dunkirk NY
I looking for an opinion for two loan options - neither of which have been referred to our residential leading side:

1) Loan request to LLC all as co-borrowers requesting a $250,000 line of credit for working capital to support their real estate investment activity . The collateral property is their personal residence that is held by the LLC

2) Mortgage to individual on a two unit - investment property. Request is around $250,000.

I need an opinion on these in relation to required disclosures which are required:

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Lending Compliance
#2248710 - 02/04/21 07:51 PM Re: Opinion needed on Leading required disclosures HMDA GIRL
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 76,096
Galveston, TX
That is a pretty wide subject. Are you talking about Regulation Z or what regulations are you concerned with? Question one is unclear. What does "Loan request to LLC all as co-borrowers" mean? On question 2 - investment property is not defined anywhere in the regulations. What is it - rental property? What are the funds being used for?
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#2248718 - 02/04/21 08:50 PM Re: Opinion needed on Leading required disclosures HMDA GIRL
HMDA GIRL Offline
100 Club
Joined: Aug 2013
Posts: 125
Dunkirk NY
This would be for REG Z..

For #2 loan - this is investment rental property -funds would be used for the purchase of the property. - At the moment we are not sure if the investor is residing in one of the units. Our Commercial loan department is not willing to give this loan to the residential side of our lending area and wanted to be clear on the disclosures needed.

As for the question #1 which is a separate loan -we have already our answer on that one.

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#2248720 - 02/04/21 09:02 PM Re: Opinion needed on Leading required disclosures HMDA GIRL
raitchjay Offline
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OK
If it's more than 2 units, it would be exempt from Reg. Z regardless of whether the borrower plans to occupy one of the units. If it's 2 units or less, you need to find out if he's going to occupy.
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#2248724 - 02/04/21 09:06 PM Re: Opinion needed on Leading required disclosures HMDA GIRL
raitchjay Offline
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OK
Since you're asking about disclosures......if he IS occupying one of the units, and it's a duplex, then you have a full-blown TRID application on your hands with Loan Estimate/Closing Disclosure etc. requirements.
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#2248727 - 02/04/21 09:14 PM Re: Opinion needed on Leading required disclosures HMDA GIRL
HMDA GIRL Offline
100 Club
Joined: Aug 2013
Posts: 125
Dunkirk NY
Yes!! thank you - Can't wait to share the news with our Commercial loan dept. LOL We never agree - when it come to disclosures.

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