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Subjec to RESPA?

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  • #5984
    Bellisima424
    Participant

    We have a loan request to purchase a condo. Purchaser is a business entity (a Corporation). The condo will be occupied by one of the business owners. Would this loan be subject to RESPA early and final disclosures?

    #5986
    S Bramlett
    Participant

    Could you tell me if there is a timing issue to provide our borrower the HUD Settlement Statement? The settlement statement from the attorney was not made available until the day before the closing.

    The loan is not a home equity, but instead purchase money, owner occupied.

    thanks,
    Sandra

    #5987
    rcooper
    Keymaster

    Bellisima24, RESPA would apply since it is for consumer purpose. RESPA exemption for business purpose looks to Reg Z’s 1026.3(a)(1) which only looks at the purpose not to whom the loan is made to like 1026.3(a)(2).

    S.Bramlett, You must allow the borrower to inspect the HUD Settlement Statement one business day prior to closing. You must also provide the HUD SS at or before settlement unless a waiver or exemption applies. You can find the requirement for delivery in 1024.10 linked here: https://www.gpo.gov/fdsys/pkg/CFR-2014-title12-vol8/pdf/CFR-2014-title12-vol8-sec1024-10.pdf

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