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#320261 - 02/23/05 06:46 PM RESPA - Exempt?
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
We are making a loan for the purpose of purchasing 40 acres of land (Exempt from RESPA)

We are making a temporary loan with permenant takeout by another FI, (Exempt from RESPA)

We are taking a 2nd mortage on the residence as an abundance of caution (RESPA applies)

Which cancels which out? Do the exemptions cancel out taking the abundance of caution?

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Lending Compliance
#320262 - 02/23/05 06:52 PM Re: RESPA - Exempt?
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
There no exemptions for abundance of caution, but if you are talking about the same piece of collateral - then yes.
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#320263 - 02/23/05 06:53 PM Re: RESPA - Exempt?
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I am assuming you're taking the 2nd as part of the temporary loan. If that assumption is correct, the loan is exempt from RESPA.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#320264 - 02/23/05 06:56 PM Re: RESPA - Exempt?
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
Yeah, the loan for the purchase of the acreage is truly temporary. Of course the lender wants a 2nd on the home too. I know the temporary part of this made it exempt but I just wanted the warm and fuzzy from the experts. Thanks!

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