https://www.dosslaw.com/; Doss Law, LLP; Christopher J. Donovan, Esq.; 300 Spectrum Center Drive, Suite 400, Irvine, CA 92618;

What We Do NOT Want to See in Your Business Purpose Loan Docs

March 29, 2022

 

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.

© Doss Law, LLP.  Attorney advertising materials.  These materials have been prepared for educational purposes only and are not legal advice.  This information is not intended to create an attorney-client relationship.  Consult a knowledgeable lawyer before implementing any of the ideas in this publication.

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