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Ely
Ely, Counselor at Law
Category: Consumer Protection Law
Satisfied Customers: 100053
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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TRID: I occasionally lend money to individuals to help them

Resolved Question:

TRID: I occasionally lend money to individuals to help them buy real estate (residential). I understand that from September 2015, new regulations came into place (TRID). How much lending can I do without being subject to TRID. When replying, please provide authoritative reference.
Submitted: 4 months ago.
Category: Consumer Protection Law
Expert:  Ely replied 4 months ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

The following loans are not affected by the updated Truth in Lending laws:

Home Equity Lines of Credit (HELOCs)

Reverse mortgages

Mortgages secured by a mobile home or dwelling not attached to real property

So if the loans are such as above, then TRID does not apply.

Regulation Z applies to businesses or persons who are known as creditors. A creditor is defined as one who: regularly extends consumer credit that is either subject to a finance charge or is payable in more than four installments. A person regularly extends consumer credit only if it extended credit more than 25 times (or more than 5 times for transactions secured by a dwelling) in the preceding calendar year.

Also, all real estate lending transactions involving consumers are covered by Regulation Z. Except for real estate transactions, any credit transactions extended in five or more installments and not in excess of $25,000 for personal, family, household or agricultural purposes are covered.

Reference - see 12 C.F.R. 226 HERE.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Customer: replied 4 months ago.
Thank you, ***** ***** good.
I understand that I am exempt from TRID because so far I have not given more than 5 loans secured on a dwelling.
However, the reference you sent me is too general. Please provide the paragraph number (or numbers, in the format 226.xx) stating the exemption.
Best regards
Ilan
Expert:  Ely replied 4 months ago.
Subpart A §1026.2(a)(15)(iii) Effective Date: 10/3/2015
Credit sale means a sale in which the seller is a creditor. The term includes a bailment or lease (unless terminable without penalty at any time by the consumer) under which the consumer:
Agrees to pay as compensation for use a sum substantially equivalent to, or in excess of, the total value of the property and service involved; and
Will become (or has the option to become), for no additional consideration or for nominal consideration, the owner of the property upon compliance with the agreement.
- - -
A person regularly extends consumer credit only if it extended credit (other than credit subject to the requirements of § 1026.32) more than 25 times (or more than 5 times for transactions secured by a dwelling) in the preceding calendar year. If a person did not meet these numerical standards in the preceding calendar year, the numerical standards shall be applied to the current calendar year. A person regularly extends consumer credit if, in any 12-month period, the person originates more than one credit extension that is subject to the requirements of § 1026.32 or one or more such credit extensions through a mortgage broker
LINK:
www.consumerfinance.gov/eregulations/1026-2/2014-25503_20150801#1026-2-a-17-iv
Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.
Customer: replied 4 months ago.
I am Sorry Ely, but now you are confusing me.
In your first post you wrote that Regulation Z requires me to register if I lend more than 5 times a year secured on residential dwelling. The only reference you gave was to "12 C.F.R. 226". I asked for the exact paragraph number stating that I would be exempt (e.g. "12 CFR 226.xy") on the grounds that I lend less than 5 times a year.When you replied, you did not give the exact paragraph number. Instead, you provided me to a reference that I might need regulation if I lend more than once under 1026.32. So please clarify: how many loans can I originate in a year: 1 or 5? And again, please provide a reference.
Expert:  Ely replied 4 months ago.

Ilan,

My apologies. I think we got a little twisted around and I take fault for that. I am going to opt out and open this up for other experts.

Your JustAnswer Account has not been charged for this conversation and your question is back in the queue. You do not have to stay online for the question to be active. Should an expert pick it up, you should be alerted via email and/or SMS (text message) unless you actively disable these features.

There is no need for you to reply at this time as this will "lock" your question back to me, thus inadvertently delaying other experts' access to it.

My apologies for any inconvenience and good luck.

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