Broker Arrangements, RESPA, & Mobile Homes

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Question:

We are looking into a relationship with a broker to finance mobile homes, what are the rules for compliance for these consumer transaction? Does RESPA apply?

Answer:

RESPA does not apply unless you are taking a security interest in real property. Other dwellingrelated compliance regs will apply, however, such as Reg B, Reg Z, and Flood. Additionally, I'm not sure whether you are referring to a true brokered loan situation (the broker has no interest except to bring the lender and borrower together), or really to a relationship with the mobile home dealer (selling the mobile home). If it is the latter, which I suspect is more likely, then you will also have some disclosure requirements under Preservation of Consumer Claims and Defenses.

First published on BankersOnline.com 7/15/02