Answer:
Answer by Jim Bedsole: That is a correct impression.
Answer:
Answer by Lucy Griffin: Jim is right — and here's the longer answer. A business-purpose loan is exempt from Regulation Z. As such, none of Reg Z's rules — including rescission — apply to the transaction. The same is true of RESPA since RESPA now follows the Reg Z definition of business-purpose loan; but be careful to remember that Regulation B stuff does apply because Reg B applies to business-purpose loans. For example, the applicant has a right to a copy of the appraisal.
First published on BankersOnline.com 08/02/04
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