RESPA

Posted By: traveler

RESPA - 02/13/12 08:02 PM

Loan secured by 2nd mtg on house that is not principal dwelling - purpose to consolidate debt. Is this RESPA?
Posted By: raitchjay

Re: RESPA - 02/13/12 08:19 PM

If the debt is consumer debt, yes.
Posted By: traveler

Re: RESPA - 02/13/12 08:15 PM

If the loan was for 1 year - is there a temporary loan exclusion?
Posted By: raitchjay

Re: RESPA - 02/13/12 08:32 PM

There is a temporary financing exemption, but simply being short term isn't enough. Review 1024.5.
Posted By: traveler

Re: RESPA - 02/13/12 10:00 PM

So if we do renew this loan for whatever term they decide I need to treat it as RESPA even though it was not treated as RESPA before (error on bank's part). Just found where the repayment was to come from sale of the house. This doesn't make a difference, does it?
Posted By: raitchjay

Re: RESPA - 02/13/12 10:18 PM

Assuming we're talking about this house only (and not a bridge loan type situation), then yes, the plan to repay the loan with the sale of the house would not qualify as temporary financing. If the loan comes up for refinancing, yes, i would treat it as RESPA.
Posted By: traveler

Re: RESPA - 02/13/12 10:15 PM

Since this is not the principal dwelling, HPML and HOEPA do not apply, correct?
Posted By: traveler

Re: RESPA - 02/13/12 10:25 PM

Also, this is not HMDA because of the purpose to consolidate debt, correct.
Posted By: raitchjay

Re: RESPA - 02/13/12 10:42 PM

Originally Posted By: traveler
Since this is not the principal dwelling, HPML and HOEPA do not apply, correct?


Correct.

Originally Posted By: traveler
Also, this is not HMDA because of the purpose to consolidate debt, correct.


Correct, unless part of the debt that is being consolidated is any dwelling-secured note that is being paid off. Then you would be dealing with a HMDA reportable refinance.