FORUM PROFILE

Servicing Disclosure Statement

  • Creator
    Topic
  • #2429
    Anonymous
    Inactive

    If we’re doing a construction loan for a second residence; do we need to provide the Servicing Disclosure Statement? (Submitted on behalf of a banker who submitted the question by e-mail.)

Viewing 1 replies (of 1 total)
  • Author
    Replies
  • #2821
    jholzknecht
    Keymaster

    RESPA applies to federally related mortgage loans, which generally includes loans secured by a one- to four-family dwelling. A servicing disclosure statement is needed for a mortgage servicing loan, which is a first lien federally related mortgage loan. You must also consider RESPA exemptions. Construction loans are generally exempt; however RESPA applies to a construction loan in several situations, such as when you are providing both construction and permanent financing, or when you are providing funds to both buy the land and to build the dwelling.

Viewing 1 replies (of 1 total)
  • You must be logged in to reply to this topic.