Does respa apply?

[wrxracer]

So, I issued a QWR for an "investment" property. It is a 3 family residential property. I am convinced that the paperwork for the loan is not sufficient. So, I sent a QWR. Got a letter back from an attorney who claims the following
"The loan document between us is exempt from Respa. This is a non-consumer loan made for business purposes. Additionaly, the secured property is non-owner occupied"

Accoridng to my reading of RESPA, there is no occupation requirement, and owning a multiple dwelling to rent out, does not make the loan "commercial" as to be exempt from RESPA.

So, am I correct, or is the "attorney" correct?

[Moe Bedard]

What types of transactions are generally not covered under RESPA?

The following are kinds of transactions that are not covered:
An all cash sale
A sale where the individual home seller takes back the mortgage,
A rental property transaction or other business purpose transaction.

[wrxracer]

Thanks ***. Any chance you can refer me to where it says that in RESPA.

[Moe Bedard]

You will have to copy and paste the link in your browser.................


http://www.hud.gov/offices/hsg/sfh/res/resindus.cfm



It is FAQ number 2

[wrxracer]

Again, thanks for your help.

However, I found this,

Exemptions (24 CFR 3500.5(b))
Transactions exempt from RESPA include loans:
• Secured by parcels of 25 acres or more, whether or not the property is
improved.
• For which the primary purpose is business, commercial, or agricultural
(definition parallels Regulation Z, 12 CFR 226.3(a)(1)). However, a
business purpose loan made to one or more persons, acting in an
individual capacity (natural persons) to acquire, refinance, improve, or
maintain a one-to-four family residential property used or to be used to
rent or lease to other persons is a covered transaction. An action by a
sole proprietorship is not considered to be conducted in an individual
capacity.

Found it in the following,
http://www.occ.treas.gov/handbook/resp.pdf

What are your thoughts??

[Moe Bedard]

my thoughts are if you want to be sure you should contact HUD and ask.........

www.hud.gov

[wrxracer]

I called, and am waiting for a call back. I Have a feeling I will not hear back, but, a couple of more calls might get me an answer.

Thanks again.

[Moe Bedard]

Were you able to find a local HUD office? I hope they get back to you so that you can be sure...........it just seems that the information out there is very conflicting for your situation.