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Loan on Spec Home - Disclosures?

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Question: 
We have a loan that is going to be secured by a borrower's personal residence and then a true spec home with no take out committment. Would you please tell me what disclosures apply? The borrower is not in the business of spec home construction yet. The borrower and his wife are planning on doing more but this type of spec home has a limited buying audience.
Answer: 

Based on the limited information I would consider this a "personal investment" loan and give all required consumer disclosures. (RESPA, Reg. Z, etc.)

First published on BankersOnline.com 4/18/05

First published on 04/18/2005

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