Posted By: CompDat
Bridge Loan? I dont think so. - 09/28/09 07:06 PM
OK here is a scenrio. A customer comes in for credit to buy a new home. They live in property A and want to buy property B. They secure the one year loan with property A and will pay the loan off with the procedes of the loan. I was told this is not RESPA or Reg. Z because its a bridge loan. IMO this is not a bridge loan. There will be no second loan because the applicants own property A fee and clear. It will just be paid off with the sale.
IMO RESPA, Reg. Z, RoR (applies because they secured it with home A) and HMDA all apply to this loan. Please opine.
IMO RESPA, Reg. Z, RoR (applies because they secured it with home A) and HMDA all apply to this loan. Please opine.