We have a unique situation. A customer is building a laundry-mat at their motel, which is also their residence (they live inside the motel office quarters). I know Reg Z-TIL is consumer purpose driven, and the purpose of this particular loan is to build the addition for the laundry-mat business. But if they are putting up the motel (their residence) for collateral for the improvements/addition to the motel would Reg Z/TIL apply?

Thanks.

Reg. Z does not apply to business purpose credit, regardless what the collateral may be.