Q: What transactions are covered by the TILA-RESPA Rule?
A: The TILA-RESPA Rule applies to most closed-end consumer credit transactions secured by real property or a cooperative unit (regardless of whether state law classifies it as real property), but does not apply to:
Consistent with existing rules under TILA, the TILA-RESPA Rule also generally does not apply to loans made by a person or entity that is not considered a creditor under Regulation Z. (§ 1026.2(a)(17))
There is also a partial exemption for certain transactions associated with housing assistance loan programs for low- and moderate-income consumers. (§ 1026.3(h))
However, certain types of loans that are subject to TILA but are not subject to RESPA are subject to the TILA-RESPA Rule’s integrated disclosure requirements, including:
Credit extended to certain trusts for tax or estate planning purposes also are covered by the TILA-RESPA Rule. (Comment 3(a)-10)