Questions and Answers
If a mortgage transaction involves more than 25 acres with borrowers primary residence, does TILA and RESPA apply?
Truth in Lending would apply if the credit is for personal, family, or household purposes. The number of acres involved does not really affect whether Truth in Lending applies, except to the extent that greater acreage might suggest that a commercial purpose is more likely.
The Real Estate Settlement Procedures Act (RESPA) does not apply. RESPA has an exemption for transactions that involve 25 acres or more. (24 CFR 3500.5(b)(1))
(Posted: 04/04/2008)
