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Servicing Disclosure Statement

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  • #2429
    imported_afaust
    Participant

    If we’re doing a construction loan for a second residence; do we need to provide the Servicing Disclosure Statement? (Submitted on behalf of a banker who submitted the question by e-mail.)

    #2821
    jholzknecht
    Keymaster

    RESPA applies to federally related mortgage loans, which generally includes loans secured by a one- to four-family dwelling. A servicing disclosure statement is needed for a mortgage servicing loan, which is a first lien federally related mortgage loan. You must also consider RESPA exemptions. Construction loans are generally exempt; however RESPA applies to a construction loan in several situations, such as when you are providing both construction and permanent financing, or when you are providing funds to both buy the land and to build the dwelling.

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