Questions and Answers
We have a LLC company that is purchasing a cabin for private use. Does RESPA or Reg Z apply?
Neither RESPA nor Regulation Z apply. The loan is to an entity other than an individual, and that makes the loan for business purposes under Regulation Z. (12 CFR 226.3(a) and Commentary 12 CFR 226.3(a)-7) RESPA also exempts business purpose loans and says you can rely on the Regulation Z definition of business loan. (24 CFR 3500.5(b)(2))
(Posted: 06/27/2008)
