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#522931 - 03/28/06 03:19 PM HOEPA and Purchase
bgehres Offline
100 Club
Joined: Mar 2005
Posts: 126
I'm sure this has been asked before, I just can find it. I have a loan to purchase a second home that will be secured by both the dwelling being purchased and their current residence (the loan is not a bridge or short term loan). I know that HOEPA does not apply to a purchase transaction, but since we're taking a lien on their existing dwelling, will HOEPA apply, even though this is a residential mortgage transaction?

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Lending Compliance
#522932 - 03/28/06 04:03 PM Re: HOEPA and Purchase
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
Yes HOEPA will apply. Your loan may be a purchase transaction but it is not a Residential Mortgage Transaction. See the definition of a RMT at 226.2(24).
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#522933 - 03/28/06 04:56 PM Re: HOEPA and Purchase
bgehres Offline
100 Club
Joined: Mar 2005
Posts: 126
I forgot that for it to be a RMT it had to be the principal dwelling. Thanks

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