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#2259695 - 09/14/21 06:39 PM RV as second home-disclosures required?
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What disclosures are required for a consumer purchase of a RV that will be used as a second home?
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Lending Compliance
#2259708 - 09/14/21 09:41 PM Re: RV as second home-disclosures required? Likes to Comply
rlcarey Online
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Not sure what would be special about it. If you are lending them more than $58,300, it would not even be covered under Regulation Z at all.
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#2259717 - 09/15/21 01:13 PM Re: RV as second home-disclosures required? Likes to Comply
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With this case in mind, now would be a good time to review Reg Z's definition of "dwelling" (Section 1026.2(a)(19)) and the Official Interpretations of Sections 1026.15(a) and 1026.23(a) discussing "principal dwelling." If the consumer in your example is in the process of retiring and expects to sell the current "principal dwelling," then rescission could become an issue in the future.
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#2259723 - 09/15/21 02:17 PM Re: RV as second home-disclosures required? Likes to Comply
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Would it be covered by the regulation if it was one loan to purchase the land and the RV to be used as a second home?
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#2259730 - 09/15/21 02:36 PM Re: RV as second home-disclosures required? Likes to Comply
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The purchase of land would be subject to TRID regardless of the loan amount.
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#2259732 - 09/15/21 02:41 PM Re: RV as second home-disclosures required? Likes to Comply
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Ok, so a travel trailer to be lived in as a second home meets the definition of a dwelling, but since it is not a primary residence and if the loan is over $58,300 it is completely exempt from Reg Z. No TIL disclosure, not subject to 1026.43 even though secured by a dwelling as defined by 1026.2(a)(19).

If later the travel trailer becomes the borrowers primary residence and the loan is refinanced, then a TIL would be required and ROR might apply, including all the other rules that apply to a dwelling or principal dwelling.

Correct?
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#2259733 - 09/15/21 02:50 PM Re: RV as second home-disclosures required? Likes to Comply
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That about sums it up, as RESPA is also out, since there is no real property involved..
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#2259762 - 09/15/21 08:18 PM Re: RV as second home-disclosures required? Likes to Comply
Richard Insley Offline
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Add flood insurance to the list of things that will have to be checked out if land's involved and your customer later decides the unit should be "affixed to a permanent site"...and then refis. :-)

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#2259810 - 09/16/21 08:51 PM Re: RV as second home-disclosures required? Likes to Comply
Dan Persfull Offline
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but since it is not a primary residence and if the loan is over $58,300 it is completely exempt from Reg Z

and

Would it be covered by the regulation if it was one loan to purchase the land and the RV to be used as a second home?


If the purchase of land is involved then it is not exempt from Reg. Z regardless of the loan amount.

(b) Credit over applicable threshold amount. (1) Exemption. (i) Requirements. An extension of credit in which the amount of credit extended exceeds the applicable threshold amount or in which there is an express written commitment to extend credit in excess of the applicable threshold amount, unless the extension of credit is:

(A) Secured by any real property, or by personal property used or expected to be used as the principal dwelling of the consumer; or

(B) A private education loan as defined in ยง 1026.46(b)(5).
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#2260296 - 09/27/21 07:06 PM Re: RV as second home-disclosures required? Likes to Comply
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Just to confirm...

If the loan is for an RV to be used as a primary residence, or if the RV is to be used as a secondary residence and the loan amount is $58,300 or below, then the ATR/QM rules under 1026.43 apply, correct?
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#2260297 - 09/27/21 07:12 PM Re: RV as second home-disclosures required? Likes to Comply
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2. Use as a residence. Mobile homes, boats, and trailers are dwellings if they are in fact used as residences, just as are condominium and cooperative units. Recreational vehicles, campers, and the like not used as residences are not dwellings.

I would be hard pressed to say a RV is ever a secondary residence unless it is parked in one spot and does not move.
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#2260299 - 09/27/21 07:26 PM Re: RV as second home-disclosures required? Likes to Comply
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We are located right next to the Great Smoky Mountain National Park. We have "camp grounds" with pads for sale/rent for this purpose and properties that people purchase where they leave an RV year round and live in the RV sometimes for a whole season at a time.

In fact, the loan scenario in this post is that the person has a simultaneous land loan being originated with us to place the RV for seasonal use as a second home.

This is why it's kind of important for me to be sure we are compliant. These situations are not uncommon in our area.
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