Answer:
How can an entity (trust) have a principal dwelling? If the dwelling will be owned by a bona fide trust (as opposed to a land trust), and the loan is to the trust (with or without the personal guarantees of the trustees), the loan will not be subject to TILA or Regulation Z, because it is an extension of credit to other than a natural person (see Section 1026.3(a)(2)).
First published on BankersOnline.com 12/5/11
print
share