Clarification on Last Week's Legal Ease

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kgoulart@ibat.org
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Clarification on Last Week's Legal Ease

I need to clarify the answer to last week's Legal Ease.

 

https://www.ibat.org/legal-ease/2017/2/lending-trid-business-purpose-exemption

Current Answer

No – the loan would be exempt from TRID in specific and Truth in Lending in general because it is an exempt business-purpose credit.  However, the loan would be subject to the right of rescission under §1026.15 because a security interest “…is or will be retained or acquired in a consumer’s principal dwelling.”

 

Revised Answer

No – the loan would be exempt from TRID in specific and Truth in Lending in general because it is an exempt business-purpose credit.  However, the loan would be subject to the right of rescission under §1026.15 when a security interest “…is or will be retained or acquired in a consumer’s principal dwelling" because of coverage extended under Texas state law.

 

Kelly Goulart  - Regulatory Compliance Manager

Direct = 512-275-2231  Email = kgoulart@ibat.org