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Monitoring information on Construction loan

Home Forums Equal Credit Opportunity Act/Regulation B Monitoring information on Construction loan

This topic contains 1 reply, has 2 voices, and was last updated by  rcooper 2 months, 4 weeks ago.

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  • #16060

    kmeade
    Participant

    Do we need to collect monitoring information if a borrower is refinancing a construction loan, with another construction loan to receive additional cash out to complete construction? I am debating, because this loan meets the definition of refinance and the definition of temporary financing. The permanent loan will be a separate loan and it will be their primary residence when construction is complete. Per 1002.13(a)(3) do we need to collect monitoring information for this loan?

    1002.13(a)(3). Temporary financing. An application for temporary financing to construct a dwelling is not subject to § 1002.13. But an application for both a temporary loan to finance construction of a dwelling and a permanent mortgage loan to take effect upon the completion of construction is subject to § 1002.13

    #16078

    rcooper
    Keymaster

    Sounds like you have only a construction loan, not a construction-perm. Based on the section of the commentary you cited above, I don’t think you would collect.

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