Skip to content
GeoDataVision
Thread Options
#2270406 - 05/13/22 12:34 AM Trid loan or not
theloanbug Offline
Platinum Poster
Joined: Sep 2005
Posts: 720
Customer is purchased commercial building and now wants to do a loan to be reimbursed for purchase. First what is purpose of loan. Second is this considered a trid loan?

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2270408 - 05/13/22 12:34 PM Re: Trid loan or not theloanbug
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,625
Galveston, TX
TRID = consumer purpose + real property. Whether this is a consumer purpose is fact based. Just because an individual bought a commercial building does not automatically make that a business purpose loan. And they are reimbursing themselves for what purpose?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2270411 - 05/13/22 01:40 PM Re: Trid loan or not rlcarey
theloanbug Offline
Platinum Poster
Joined: Sep 2005
Posts: 720
Purchase building by another source and now needs the money back for the original purchase. Customer is going to rent out building.

Return to Top
#2270412 - 05/13/22 01:42 PM Re: Trid loan or not theloanbug
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,832
Bloomington, IN
And they are reimbursing themselves for what purpose?

This is a key question to be answered.

However, IMHO I think you will have a difficult time classifying the new loan as a business purpose loan if "reimbursing themselves" involves replenishing their personal funds they used to purchase the building.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2270415 - 05/13/22 03:24 PM Re: Trid loan or not Dan Persfull
theloanbug Offline
Platinum Poster
Joined: Sep 2005
Posts: 720
Spoke with customer. Going to remodel shop building.

Return to Top
#2270500 - 05/16/22 09:19 PM Re: Trid loan or not theloanbug
theloanbug Offline
Platinum Poster
Joined: Sep 2005
Posts: 720
Would this still be considered a TRID loan?

Return to Top
#2270516 - 05/17/22 01:19 PM Re: Trid loan or not theloanbug
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,832
Bloomington, IN
Going to remodel shop building.

Is the shop building used primarily for personal or business use?
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2270564 - 05/18/22 01:36 AM Re: Trid loan or not Dan Persfull
theloanbug Offline
Platinum Poster
Joined: Sep 2005
Posts: 720
Business.

Return to Top
#2270565 - 05/18/22 02:33 AM Re: Trid loan or not theloanbug
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,625
Galveston, TX
Then you have your answer.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top