Construction Loans and Reg B

It's the end of the day and we are brain-tired, but would someone clarify for us whether or not we are permitted to collect marital status on a construction loan? Our application provides for it, but Reg B 202.13 states that you would get it on a purchase or refinance of a principal dwelling occupied or to be occupied. The constructed home is not yet the principal dwelling, but will be once the home is completed. Is this where 202.14(c) comes in if we collected it when we didn't need to? Thank you.

You are PERMITTED to collect marital status on any loan other than individual, unsecured credit (provided you only use the terms married, unmarried, or separated). You are REQUIRED to collect marital status on loans to purchase or refinance the purchase of the borrower's principal dwelling (by Reg B and Reg C) and on home improvement loans (if you classify and report under Reg C).

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Jim Bedsole, CRCM, CBA, CFSA

Opinions expressed are my own, and do not necessarily reflect those of my employer.

Check 202.5(d). This section specifies what information may be requested from applicants. This governs independently from 202.13 monitoring data collection. It prohibits the collection of marital status if the individual is applying for unsecured credit. It therefore permits obtaining information about marital status for secured credit. Reg B permits this because it always defers to state property law and state property law comes in to play when property -- both personal and real -- secures the loan.