If you borrow money to purchase shares in a company secured by your home - is that a consumer or business purpose?

I say consumer - lender says business. What do you think?

Purchase shares for what purpose - personal investment?? Or are they buying the business? For example, if I borrow money to buy 100 shares of IBM - it is not business purpose. It is going to depend on the circumstances.

Not enough information on the borrower to give you a definite answer, but unless he buys and sales shares as a livelihood, or operates this company in some capacity then it's a personal investment and a consumer purpose loan. Review 226.3 and its Commentary for some additional guidance.

It would be no different then me buying stock in GM speculating a Federal bail out.

He's a doctor buying shares in the clinic where he works under his own name.

You could say business purpose because the firm is trying to raise capital and he is making a personal investment in his future with the firm (although I still think personal).

Or you could say personal - beause he is investing personally in the business. His interests will not "buy" the clinic.

I still think consumer.

From the Commentary to 226.3(a)(2)

The relationship of the borrower's primary occupation to the acquisition. The more closely related, the more likely it is to be business purpose.

I think it would be safe to disclose this as a business purpose loan.