Lot Loans & RESPA

02/11/2002

We have a customer who wants a lot loan. They have stated that they will probably build in the next 12 or 18 months. We are doing a lot loan only, with no advance other than for the lot purchase. In my opinion, this would not be subject to RESPA. Do you agree? Now, let me throw in a curve ball. We have the same scenario, except the customer is going to build utilizing their own funds. We still only finance the purchase of the lot; there are no proceeds advanced for construction building will be in the next 18 months. Is this subject to RESPA? Do you know of any good cheat sheets that would help with these type questions??