Doss Guides

Clients frequently send us copies of their business purpose loan docs for review.  Most of the time, we see a “throw in the kitchen sink” or “more is better” approach.  The loan files are riddled with a mishmash of appropriate disclosures but also disclosures that only belong in a consumer loan document file.  If you throw a bunch of consumer disclosures into your business purpose docs, you are inviting a judge or jury to apply: “If it walks like a duck and quacks like a duck, it must be a duck.”  That result could be catastrophic if your loan is found to be a consumer loan.  So, here is what we do NOT want to see in a set of Business Purpose Loans Docs…

• Your NMLS Identification Number
• Loan Estimate
• Closing Disclosure
• Good Faith Estimate
• Truth-in-Lending Disclosure
• Itemization of Amount Financed
• Credit Score Disclosure
• Notice of Right to Cancel
• Notice of Intent to Proceed
• Waiver of the Right to Rescind
• Counseling Notice or list of HUD Counsellors
• High-Cost Notice/Section 32/HOEPA—state or federal
• Service Provider List
• Anti-Steering Disclosure
• Consumer Privacy Disclosure (a general Privacy Policy is okay)
• Affiliated Business Arrangement Disclosure

Prudent legal advice comes from experience.  We have over 50 years of it.