This question was originally posted in our Compliance Master Group forum by ScottH.
What is the definition of residential real property under RESPA? I was told by an auditor that a land only loan secured by a lot with a mobile home sits but the mobile is titled and not taken as colateral is covered under RESPA. Is this correct?
Federally related mortgage loan or mortgage loan means as follows:
(1) Any loan (other than temporary financing, such as a construction loan):
(i) That is secured by a first or subordinate lien on residential real property, including a refinancing of any secured loan on residential real property upon which there is either:
(A) Located or, following settlement, will be constructed using proceeds of the loan, a structure or structures designed principally for occupancy of from one to four families (including individual units of condominiums and cooperatives and including any related interests, such as a share in the cooperative or right to occupancy of the unit); or
(B) Located or, following settlement, will be placed using proceeds of the loan, a manufactured home
If you don’t have a security interest in the mobile home then RESPA is not applicable.’
Jack’s Compliance Resource offers many products including policy and procedure updates, Director/Senior Manager Updates, Training Manuals, Flowcharts, Checklists and more. To see our Reg X products click here: Reg X Marketplace