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Reg Z/RESPA -Equity to Purchase Primary Residence

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Question: 
I have an applicant that owns a Duplex that is free and clear and they want to use the equity to purchase a new primary residence. The purpose of the loan is personal. I know that HMDA would apply for the new property however I am not sure about RESPA/Reg Z. When I prepare my Early Disclosures the information that would be disclosed would be a combination. The Origination, Flood, Lenders Title would be on the rental but we disclose Owners Title, Tax Stamps and those figures would only apply to the property being purchased.
Answer: 

Reg Z applicability is based on purpose, not collateral. Based on what you describe, that is a consumer purpose loan and Reg Z will apply. RESPA is dependent on both purpose and collateral. Purpose is still consumer, and collateral is a 1-4 family dwelling, so RESPA would also apply.

First published on BankersOnline.com 7/1/13

First published on 07/01/2013

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