Federal Mortgage LawsQuestion 15 of 400
Which of the following loans is generally EXEMPT from RESPA coverage?
a.A loan secured by 25 acres of vacant land used primarily for business
b.A purchase-money loan on a single-family home
c.A refinance of a borrower's principal residence
d.A home equity line of credit on an owner-occupied duplex
Explanation
RESPA covers federally related mortgage loans secured by residential property (1-4 units). A loan on vacant land used primarily for a business or agricultural purpose is generally exempt. Purchase loans, refinances, and HELOCs on residential dwellings are covered transactions. The exemption turns on the property's non-residential, business nature.
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