Q: What transactions are covered by the TILA-RESPA rule?
A: The rule applies to most closed-end consumer credit transactions secured by real property, but does not apply to: HELOCs; reverse mortgages; or chattel-dwelling loans, such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land).
There is also a partial exemption for certain transactions associated with housing assistance loan programs for low- and moderate-income consumers.
Certain types of loans that (prior to this new rule) were subject to TILA but not RESPA are subject to the TILA-RESPA rule's integrated disclosure requirements, including: construction-only loans and loans secured by vacant land or by 25 or more acres. Credit extended to certain trusts for tax or estate planning purposes also are covered.