If a commercial loan is secured by residential property would it be considered a federally related mortgage loan? Thanks.

What do you mean by a "commercial loan"? What is the purpose of the loan proceeds?

A commercial loan would be a loan that is not used for residential purposes. It could be a loan that a business owner takes out to purchase business equipment, etc. and uses his home as collateral.

Federally Related Mortgage Loan (FRML) is defined in RESPA in §3500.2; however, RESPA doesn't apply to commercial loans [see §3500.5(b)(2)]. I read the definition of FRML closely. It doesn't say anything about commercial loans.

Just a point for clarification. A "Federally Related Mortgage Loan", defined in RESPA and a "Federally Related Transaction" defined in the "Interagency Appraisal and Evaluation Guidelines" are not the same. A Federally Related Transaction is defined as: "any real estate-related financial transaction in which the agencies engage, contract for, or regulate, and that requires the services of an appraiser."

Thanks, guys. I was needing this for RESPA purposes and this answers my question.