Questions and Answers

No. “Early disclosures” (those that must be given at or shortly after application) are required under the Real Estate Settlement Procedures Act (RESPA) and the Truth-in-Lending Act (TILA) or TILA’s implementing  regulation, Regulation Z.

RESPA does not apply to a loan secured by vacant or unimproved property. However, if a structure or manufactured home will be constructed or placed on the property within two years of settlement using the loan proceeds, the transaction is subject to RESPA. Also, a loan for a structure or manufactured home to be placed on vacant or unimproved property is covered by RESPA if the loan will be secured by a lien on the property.

Since this is a consumer loan, it is subject to TILA. TILA requires early disclosures in a number of circumstances, none of which appear to cover the loan described in the question. For example, Regulation Z requires early disclosures in credit and charge card applications and solicitations, open-end home equity plans, certain adjustable rate mortgages, and “residential mortgage transactions” that are also subject to RESPA. (A residential mortgage transaction is closed-end credit secured by the consumer’s principal dwelling where the proceeds of the credit are used for the acquisition or initial construction of that dwelling.)

Since RESPA does not apply and no TILA or Regulation Z early disclosure requirements apply, the creditor need not supply any early disclosures.