Applicant rents out 3 bedrooms in his townhouse primary residence. He has leases, but is not licensed as a boarding house. Loan was approved as commercial, but Loan Operations says it is residential and RESPA and Reg Z applies.

I am trying to find a reg cite to confirm residential, but cannot.

Advice on how to verify this is a residential loan and not commercial will be appreciated.

Not knowing the purpose of the loan, I would treat this property as residential regardless. The homeowner has three roommates in his primary residence.

Not that you need it - but ditto what Kathleen stated. This is an owner-occupied single family residence.