Cross-collateralized Box on Loan Application

Question:

On a RESPA applicable loan, can I check the cross collateralized box on the Deed of Trust just as general practice, or will this create a compliance issue?

Answer:

Deeds of Trust are a state law issue. Not knowing what state you are referring to makes it impossible to advise you.

In general, the TIL disclosure should reflect the legal terms of the note. If you indicate that you are taking other collateral (cross collateral), then the TIL disclosure should also represent this.

First published on BankersOnline.com 9/13/10