IBA Compliance Connection

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We are funding the purchase of a mobile home not attached to dirt. We understand that because the mobile home is not attached to real property, the loan is not subject to the TILA-RESPA integrated disclosure (TRID) requirements, but do we have to send any early disclosures, such as a Good Faith Estimate?

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No, a mortgage secured by a mobile home not attached to real property is not subject early disclosures.

However, under Regulation Z, you should provide an interest rate and payment summary, together with a specialized disclosure required for non-TRID mortgage loans prior to consummation of the loan. Additionally, other Regulation Z disclosures required for loans secured by a dwelling generally will apply to a loan secured by a mobile home. For example, you should provide a notice of the right of rescission if the mobile home securing the loan is the borrower’s principal residence.

For resources related to our guidance, please see:

  • Regulation Z, 12 CFR 1026.18 (Disclosure requirements for mortgage loans not secured by real property, which do not include early disclosures)
  • Regulation Z,12 CFR 1026.18(s) (“Interest rate and payment summary for mortgage transactions. For a closed-end transaction secured by real property or a dwelling, other than a transaction that is subject to § 1026.19(e) and (f), the creditor shall disclose the following information about the interest rate and payments: . . .”)
  • Official Interpretations, 12 CFR 1026, Paragraph 18(s),Comment 4 (“. . . 1026.18(s) governs only closed-end reverse mortgages and closed-end transactions secured by a dwelling that is personal property (such as a mobile home that is not deemed real property under State or other applicable law).”)
  • Regulation Z,12 CFR 1026.23(a)(1) (“In a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction, except for transactions described in paragraph (f) of this section.”)

  • Regulation Z, 12 CFR 1026.2(a)(19) (“Dwelling means a residential structure that contains one to four units, whether or not that structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home, and trailer, if it is used as a residence.”)