New Reg Amendments & Mobile Home Only Loan

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Question:

We are making a mobile home only loan (no real estate). We understand that no early disclosures are needed (TIL, Good Faith, Etc.) when RESPA does not apply, so does this also means that the seven day waiting period does not apply with this loan? This is a purchase of a mobile home. Section 35 (HPML) mentions that any principal residence can fall into the HPML category. Is this correct? Do we have to check our APR against the APOR to see if this is a HPML even though we have no real estate?

Answer:

HPML applies to loans secured by the borrower's principal dwelling, where the APR meets or exceeds the applicable thresholds when compared to the APOR. If you look at the definition of a dwelling found in 226.2, you will see that a mobile home meets that definition.

First published on BankersOnline.com 1/11/10