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#925806 - 03/19/08 03:04 PM Early disclosures - Construction Loan
Baker Offline
Platinum Poster
Joined: Nov 2005
Posts: 778
Washington State
We made a permanent construction loan to a couple. The husband owns his own construction business and will be building the home on his own in between his normal jobs. The loan officer failed to provide any of the early disclosures. It appears that the loan would be covered under Reg Z and RESPA since it is consumer purpose and permanent long term financing. The only thing I could think of is that the officer didn't provide the disclosures because RESPA states that there is an exemption for bonafide contractors. I interpret that to mean for contractors building homes to sell and such, not this case. Does anyone know any different or if this loan was disclosed on properly?

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Lending Compliance
#925864 - 03/19/08 03:45 PM Re: Early disclosures - Construction Loan Baker
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
You're interpretation is correct...it doesn't count for long-term nor for personal purpose loans.
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