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Consumer purpose rental?

Home Forums Truth in Lending/ Regulation Z Consumer purpose rental?

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  • #2516
    KRT
    Participant

    In the case of a loan secured by the borrower’s principal dwelling that says that the purpose is to purchase a an adjacent lot that has a mobile home which will be repaired and rented to the borrower’s adult son, would you take treat this as a commercial purpose loan to purchase rental property? Or should it be considered consumer purpose and subject to Reg. Z?

    #2972
    dmurray
    Participant

    Due to the fact that it’s a cash out on the customer’s principle dwelling, I would consider this loan subject to RESPA, Reg. Z, and HMDA.

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