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#1649987 - 01/12/12 03:15 PM Construction Loan Only - Early TIL?
TNB Offline
Member
Joined: Mar 2008
Posts: 77
Texas
I would like to verify than an early TIL in NOT required on an interim construction loan, 1-4 family dwelling? The loan proceeds are for interim construction only. The permanent financing will be done elsewhere and the customer already owns the lot. It's been three years since we have done one of these loans and from what I read this is NOT covered by RESPA and therefore Reg Z nor MDIA apply. I would just like confirmation.

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Lending Compliance
#1650172 - 01/12/12 05:11 PM Re: Construction Loan Only - Early TIL? TNB
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Quote:
from what I read this is NOT covered by RESPA and therefore Reg Z nor MDIA apply


You are correct that construction only loans are exempt from RESPA and 226.19(a) of Reg. Z (MDIA), but the other provisions of Reg Z will apply.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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