Do RESPA and Reg Z Apply Here?

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Question:

If the loan purpose is for personal use, and the collateral is rental property that the borrower does not live in, do RESPA and Reg Z apply?

Answer:

Yes, Reg Z and RESPA exempts business purpose loans, not consumer purpose loans. The exception is if the property securing the loan is twenty-five or more acres, it would be exempt from RESPA, but not from Reg Z.

First published on BankersOnline.com 10/18/10