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#2252091 - 04/09/21 01:46 PM Loan to Purchase Bare Land
TeamComply Offline
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What compliance/regulatory requirements and disclosures apply to a loan to purchase a bare lot? TRID applies, doesn't it? Eventually borrower plans to build on the lot, but we will not be financing the construction or permanent financing of the dwelling. Loan is solely to purchase the lot (land) and will be secured by lot (land).

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#2252093 - 04/09/21 02:04 PM Re: Loan to Purchase Bare Land TeamComply
Skittles Offline
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Yes, TRID does apply to this loan since your financial institution is taking 'dirt' as collateral for a consumer purpose loan.
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#2252094 - 04/09/21 02:10 PM Re: Loan to Purchase Bare Land Skittles
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The bare land loan requirements changed when the TRID rules when into affect, correct?

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#2252095 - 04/09/21 02:25 PM Re: Loan to Purchase Bare Land TeamComply
Skittles Offline
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Correct - any consumer purpose loan to an individual(s) secured by dirt (bare land, commercial property, residential real estate, etc.) requires the TRID disclosures.

Also - I'm 'assuming' there isn't a structure on the land. In previous lives the loan would be written up this way; however there may have been an old outbuilding on the property, which required a flood determination. Loan officers thought that since the value was in the land that the flood requirements didn't apply.
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#2252096 - 04/09/21 02:34 PM Re: Loan to Purchase Bare Land Skittles
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Thank you. And yes, no existing structure on the lot.

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#2252101 - 04/09/21 03:23 PM Re: Loan to Purchase Bare Land Skittles
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Where can I find a direct link to the current TRID rules? Thanks!

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#2252132 - 04/09/21 08:17 PM Re: Loan to Purchase Bare Land TeamComply
Dan Persfull Offline
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Top left of page - Click on Compliance - scroll down and right click on Regulations and then choose how you want to open them.

TRID rules will be in 1026.19(e) & (f) and .37 & .38.
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#2252137 - 04/09/21 09:01 PM Re: Loan to Purchase Bare Land Dan Persfull
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Thank you much Dan!!

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