The exemption in Section 3500.5(b)(5) states the regulation does not apply to, “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.”
You must be sure a structure or a manufactured home will not be constructed or placed on the real property using the loan proceeds. A signed statement from the borrower is one way of demonstrating complaince with the reqauirement.