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#2268917 - 04/11/22 07:27 PM Consumer Loan Changed to Business Loan
WDCA Offline
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Joined: Nov 2015
Posts: 76
We had a consumer mortgage loan where the borrower now wants the loan to be in the name of their LLC that was just created. All loan terms are staying the same, just the name on the loan is changing. In this case, can we treat this as if we just over-disclosed and can move forward or should this have been treated as a loan withdrawal? Thanks in advance!

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Lending Compliance
#2268927 - 04/11/22 08:01 PM Re: Consumer Loan Changed to Business Loan WDCA
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
The individuals withdrew and the business applied.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2268931 - 04/11/22 08:28 PM Re: Consumer Loan Changed to Business Loan WDCA
WDCA Offline
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Joined: Nov 2015
Posts: 76
Thank you for confirming. Would we re-disclose appraisal notice/get waiver and need to wait 3 days?

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#2268933 - 04/11/22 08:55 PM Re: Consumer Loan Changed to Business Loan WDCA
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
Well, if you deemed this to still be a consumer purpose loan, you would have the GFE/HUD-1 timing to contend with also as it would not be exempt from RESPA.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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