Whether a loan is considered a consumer or commercial transaction depends on the primary purpose of the loan, not the type of collateral securing the transaction. For example, a loan to expand a business is a business purpose loan, even if it is secured by the borrower's residence or personal property. Special rules will deem a loan to be for business purposes if made to “acquire, improve, or maintain rental property that is or will be owner-occupied,” depending on the number of housing units in the property — and even under these special rules, a business-purpose loan will not be categorized as a consumer loan simply due to the collateral securing the loan.

• Regulation Z, 12 CFR 1026.3(a)(1) (Listing exemptions from Regulation Z, including extensions of credit primarily for a business, commercial or agricultural purpose)

• Regulation X, 12 CFR 1024.5(b) (Listing RESPA exemptions, including extensions of credit primarily for a business, commercial or agricultural purpose)

• Official Interpretations, 12 CFR 1026, Paragraph 3(a), Comment 3(iii)(a) (“Examples of business-purpose credit include: A loan to expand a business, even if it is secured by the borrower's residence or personal property.”)

• Official Interpretations, 12 CFR 1026, Paragraph 3(a), Comment 4 (“Credit extended to acquire, improve, or maintain rental property (regardless of the number of housing units) that is not owner-occupied is deemed to be for business purposes.”)

• Official Interpretations, 12 CFR 1026, Paragraph 3(a), Comment 5 (“If credit is extended to acquire, improve, or maintain rental property that is or will be owner-occupied within the coming year, different rules apply: Credit extended to acquire the rental property is deemed to be for business purposes if it contains more than 2 housing units. Credit extended to improve or maintain the rental property is deemed to be for business purposes if it contains more than 4 housing units. Since the amended statute defines dwelling to include 1 to 4 housing units, this rule preserves the right of rescission for credit extended for purposes other than acquisition. Neither of these rules means that an extension of credit for property containing fewer than the requisite number of units is necessarily consumer credit. In such cases, the determination of whether it is business or consumer credit should be made by considering the factors listed in comment 3(a)-3.”)