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Early Disclosure for Non-Owner Occupied Home?

My bank never prepared early disclosures for a non-owner occupied home equity in the past. About a month ago someone said we should be making those disclosures, so we have started. My question is: Do we really have to send out early disclosures for a loan being backed by a non-owner occupied home?

by Dan Persfull: I would challenge you to review Reg. Z and RESPA to find an exemption for non-owner occupied property securing a consumer purpose loan. I will point you to sections 1026.19(a) and 1024.7 to begin your review.


by Jim Bedsole: If the purpose of the loan is to acquire, improve, or maintain non-owner occupied rental property, the loan would be deemed "business purpose" and therefore exempt from RESPA and Reg Z in accordance with section 1026.3(a) and Official Staff Commentary. If the loan is for other consumer purposes, the fact that it is secured by non-owner occupied rental property doesn't change that consumer purpose to business purpose.

First published on 05/19/2014

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