Over 25 Acres of Property - Early TIL Required?

Answered by:

Question:

Is an Early Truth in Lending disclosure required on an owner occupied one-to-four family purchase that includes over twenty-five acres of property?

Answer:

Answer by Randy Carey:No, it is not, since the transaction would be exempt from RESPA, no early TIL is required:

Sec. 226.19 Certain mortgage and variable-rate transactions.
(a) Mortgage transactions subject to RESPA----(1)(i) Time of disclosures. In a mortgage transaction subject to the Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.) that is secured by the consumer’s dwelling, other than a home equity line of credit subject to Section 226.5b or mortgage transaction subject to paragraph (a)(5) of this section, the creditor shall make good faith estimates of the disclosures required by Section 226.18 and shall deliver or place them in the mail not later than the third business day after the creditor receives the consumer’s written application.

Answer:

Answer by Lucy Griffin:The Federal Reserve has proposed changes to real estate secured loans that would drop the connection to RESPA. The proposal would require early disclosures and pre-settlement disclosures on all real estate secured loans.

First published on BankersOnline.com 5/03/10