HELOC Exemption from RESPA GFE Closing Costs

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Question:

Are HELOCs exempt from the RESPA requirement of providing a good faith estimate of closing costs if the credit union has complied with the home equity disclosure requirements of Reg Z?

Answer:

From 12 CFR 1024.7(h)-Open-end lines of credit (home-equity plans) under Truth in Lending Act:

In the case of a federally related mortgage loan involving an open-end line of credit (home-equity plan) covered under the Truth in Lending Act and Regulation Z, a lender or mortgage broker that provides the borrower with the disclosures required by 12 CFR 1026.40 of Regulation Z at the time the borrower applies for such loan shall be deemed to satisfy the requirements of this section.

First published on BankersOnline.com 6/25/12