MDIA Confusion

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Question:

We are confused about when MDIA applies on two loan types. Does MDIA apply when you are taking a mobile home without the land as collateral? Does MDIA apply when you are taking a consumer's principal dwelling as collateral for the purpose of business capital?

Answer:

No land = No MDIA (as RESPA doesn't apply unless you have a lien on dirt).

Business Purpose = No MDIA (as RESPA doesn't apply to business purpose loans).

For both answers, refer to 3500.5 (exemptions from RESPA).

First published on BankersOnline.com 3/22/10