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#297149 - 01/03/05 10:00 PM Not sure if respa
Anonymous
Unregistered

An earlier question about cd used as security but also the
home was listed as other security, made me think of the question-- If the cds fully secure the loan and the home taken only as extra security and it was their homestead, would respa count. We had something like this recently and
management said no to respa as the house was just as additional security. but the other collateral secured the loan plus it was done as a consumer reg z loan. You know
fed box and all. We didn't treat as a respa loan- were we wrong and if so why.
Thank You for the help.

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#297150 - 01/03/05 10:06 PM Re: Not sure if respa
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 46,645
Bloomington, IN
RESPA applied. You (meaning the bank) have a consumer purpose loan secured by a residential mortgage.

"Abundance of Caution" does not mean squat when it comes to regulations. A mortgage is a mortgage, period. If you didn't need the dwelling to secure the loan, then why do you have it as security?
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#297151 - 01/03/05 10:20 PM Re: Not sure if respa
corkygirl Offline
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Joined: Sep 2004
Posts: 4,241
middle of the country
Quote:

RESPA applied. You (meaning the bank) have a consumer purpose loan secured by a residential mortgage.

"Abundance of Caution" does not mean squat when it comes to regulations. A mortgage is a mortgage, period. If you didn't need the dwelling to secure the loan, then why do you have it as security?




I am so glad you responded, this is the same tired old argument I get from the commercial lenders on a regular basis!!!!
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#297152 - 01/04/05 03:43 PM Re: Not sure if respa
Anonymous
Unregistered

Another question? Loan only for short term say 6 months and
they say the loan will be paid off. Would this qualify as a temporary loan and na to respa.

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#297153 - 01/04/05 04:00 PM Re: Not sure if respa
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 46,645
Bloomington, IN
This would depend on the repayment source. If the loan will be paid from the sale of the property it would be temporary financing.

Short term does not automatically equate to temporary.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#297154 - 01/04/05 08:10 PM Re: Not sure if respa
Anonymous
Unregistered

Sale of her old home will pay off part of the loan, then
the balance will be refinanced with the same bank. To me this is not temporary since the balance of the loan will be refinanced with the same bank. Am I right? Also when refinaced the CD's will not be collateral, only the home which will be her homestead.
The current note is in 2 names, but the deed of trust, warranty deed, promissory note, (is in person name who will live in the house) all dated the same as the
reg z consumer note which show the cds as collateral and
house as other security. The refinance note would only be in her name. Does that make any difference when looking at
at the current loan & respa.
These type of situations I will not miss when I retire.

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#297155 - 01/04/05 08:31 PM Re: Not sure if respa
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 46,645
Bloomington, IN
Quote:

Sale of her old home will pay off part of the loan, then the balance will be refinanced with the same bank.




The current loan is temporary financing. It will be paid from the sale of the property or through other financing arrangements.

The name scenario you presented would not play a part in determining if RESPA applies. It would still be a consumer purpose loan secured by a residential mortgage.
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The opinions expressed are mine and they are not to be taken as legal advice.

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