In looking at the Escrow rule and small servicer exemption status it states that more than half of your loans made in the previous year for first lien transactions would qualify you. My question is: would we only look at the mortgage loans secured by a borrowers principal dwelling? As example, we have some loans that are spec loans by builders, some construction loans. Looking for information please. Thanks.

For the 50% calculation you are to use consumer purpose (i.e. covered by Regulation Z), closed end (this would include multiple advance closed end loans), first lien, dwelling secured loans that you made in the prior calendar year.