Source: http://www.law.cornell.edu/cfr/text/12/1024.5
Timestamp: 2014-08-23 16:36:13
Document Index: 271156085

Matched Legal Cases: ['art 1024', '§ 1024', '§ 1024', '§ 1024', '§ 2603', '§ 2604', '§ 2605', '§ 2607', '§ 2609', '§ 2617', '§ 5512', '§ 5581']

12 CFR 1024.5 - Coverage of RESPA. | LII / Legal Information Institute
CFR › Title 12 › Chapter X › Part 1024 › Section 1024.5 12 CFR 1024.5 - Coverage of RESPA.
§ 1024.5
RESPA and this part apply to all federally related mortgage loans, except for the exemptions provided in paragraph (b) of this section.
A loan on property of 25 acres or more.
An extension of credit primarily for a business, commercial, or agricultural purpose, as defined by 12 CFR 1026.3(a)(1) of Regulation Z. Persons may rely on Regulation Z in determining whether the exemption applies.
Temporary financing.
Temporary financing, such as a construction loan. The exemption for temporary financing does not apply to a loan made to finance construction of 1- to 4-family residential property if the loan is used as, or may be converted to, permanent financing by the same lender or is used to finance transfer of title to the first user. If a lender issues a commitment for permanent financing, with or without conditions, the loan is covered by this part. Any construction loan for new or rehabilitated 1- to 4-family residential property, other than a loan to a bona fide builder (a person who regularly constructs 1- to 4-family residential structures for sale or lease), is subject to this part if its term is for two years or more. A “bridge loan” or “swing loan” in which a lender takes a security interest in otherwise covered 1- to 4-family residential property is not covered by RESPA and this part.
Any loan secured by vacant or unimproved property, unless within two years from the date of the settlement of the loan, a structure or a manufactured home will be constructed or placed on the real property using the loan proceeds. If a loan for a structure or manufactured home to be placed on vacant or unimproved property will be secured by a lien on that property, the transaction is covered by this part.
Any assumption in which the lender does not have the right expressly to approve a subsequent person as the borrower on an existing federally related mortgage loan. Any assumption in which the lender's permission is both required and obtained is covered by RESPA and this part, whether or not the lender charges a fee for the assumption.
Loan conversions.
Any conversion of a federally related mortgage loan to different terms that are consistent with provisions of the original mortgage instrument, as long as a new note is not required, even if the lender charges an additional fee for the conversion.
A bona fide transfer of a loan obligation in the secondary market is not covered by RESPA and this part, except as set forth in section 6 of RESPA (12 U.S.C. 2605) and § 1024.21. In determining what constitutes a bona fide transfer, the Bureau will consider the real source of funding and the real interest of the funding lender. Mortgage broker transactions that are table-funded are not secondary market transactions. Neither the creation of a dealer loan or dealer consumer credit contract, nor the first assignment of such loan or contract to a lender, is a secondary market transaction (see § 1024.2).
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.United States CodeU.S. Code: Title 12 - BANKS AND BANKING§ 2603 - Uniform settlement statement§ 2604 - Home buying information booklets§ 2605 - Servicing of mortgage loans and administration of escrow accounts§ 2607 - Prohibition against kickbacks and unearned fees§ 2609 - Limitation on requirement of advance deposits in escrow accounts§ 2617 - Authority of Bureau§ 5512 - Rulemaking authority§ 5581 - Transfer of consumer financial protection functions