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Does RESPA apply for property-secured debt consolidation loans?

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Question: 
Is a loan for personal debt consolidation which is secured by rental property covered by RESPA?
Answer: 

The loan is covered by RESPA because the purpose of the loan is personal, not business. Regulation Z would apply to the loan except for the right of rescission which is not applicable because the dwelling is not the primary residence of the borrower. Furthermore, you should not obtain government monitoring information because the loan is not for purchase, refinance, or construction.

First published on BankersOnline.com 3/5/01

First published on 03/05/2001

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