www.fdic.gov/regulations/laws/rules/6500-2520.html#fdic6500res3500.5
§ 3500.5 Coverage of RESPA.
(a) Applicability. RESPA and this part apply to all
federally related mortgage loans, except for the exemptions provided in
paragraph (b) of this section.
(b) Exemptions. (1) A loan on property of 25 acres or
more.
(2) Business purpose loans. An extension of credit
primarily for a business, commercial, or agricultural purpose, as
defined by Regulation Z, 12 CFR
226.3(a)(1). Persons may rely on Regulation Z in determining
whether the exemption applies.
(3) Temporary financing. Temporary financing, such as
a construction loan. The exemption for temporary financing does not
apply to a loan made to finance construction of 1- to 4-family
residential property if the loan is used as, or may be converted to,
permanent financing by the same lender or is used to finance transfer
of title to the first user. If a lender issues a commitment for
permanent financing, with or without conditions, the loan is covered by
this part. Any construction loan for new or rehabilitated 1- to
4-family residential property, other than a loan to a bona fide
builder (a person who regularly constructs 1- to 4-family
residential structures for sale or lease), is subject to this part if
its term is for two years or more. A "bridge loan" or "swing
loan" in which a lender takes a security interest in otherwise
covered 1- to 4-family residential property is not covered by RESPA and
this part.
(4) Vacant land. Any loan secured by vacant or
unimproved property, unless within two years from the date of the
settlement of the loan, a structure or a manufactured home will be
constructed or placed on the real property using the loan proceeds. If
a loan for a structure or manufactured home to be placed on vacant or
unimproved property will be secured by a lien on that property, the
transaction is covered by this part.
(5) Assumption without lender approval. Any assumption
in which the lender does not have the right expressly to approve a
subsequent person as the borrower on an existing federally related
mortgage loan. Any assumption in which the lender's permission is both
required and obtained is covered by RESPA and this part, whether or not
the lender charges a fee for the assumption.
(6) Loan conversions. Any conversion of a federally
related mortgage loan to different terms that are consistent with
provisions of the original mortgage instrument, as long as a new note
is not required, even if the lender charges an additional fee for the
conversion.
(7) Secondary market transactions. A bona fide
transfer of a loan obligation in the secondary market is not
covered by RESPA and this part, except as set forth in section 6 of
RESPA (12 U.S.C. 2605) and
§ 3500.21. In
determining what constitutes a bona fide transfer, HUD will
consider the real source of funding and the real interest of the
funding lender. Mortgage broker transactions that are table-funded are
not secondary market transactions. Neither the creation of a dealer
loan or dealer consumer credit contract, nor the first assignment of
such loan or contract to a lender, is a secondary market transaction
(see
§ 3500.2.)
www.fdic.gov/regulations/laws/rules/6500-2520.html#fdic6500res3500.2
Federally related mortgage loan or mortgage loan
means as follows:
(1) Any loan (other than temporary financing, such as a
construction loan):
(i) That is secured by a first or subordinate lien on residential
real property, including a refinancing of any secured loan on
residential real property upon which there is either:
(A) Located or, following settlement, will be constructed using
proceeds of the loan, a structure or structures designed principally
for occupancy of from one to four families (including individual units
of condominiums and cooperatives and including any related interests,
such as a share in the cooperative or right to occupancy of the unit);
or
(B) Located or, following settlement, will be placed using
proceeds of the loan, a manufactured home; and
(ii) For which one of the following paragraphs applies. The loan:
(A) Is made in whole or in part by any lender that is either
regulated by or whose deposits or accounts are insured by any agency of
the Federal Government;
(B) Is made in whole or in part, or is insured, guaranteed,
supplemented, or assisted in any way:
(1) By the Secretary or any other officer or agency of
the Federal Government; or
(2) Under or in connection with a housing or urban
development program administered by the Secretary or a housing or
related program administered by any other officer or agency of the
Federal Government;
(C) Is intended to be sold by the originating lender to the
Federal National Mortgage Association, the Government National Mortgage
Association, the Federal Home Loan Mortgage Corporation (or its
successors);
(D) Is made in whole or in part by a "creditor", as defined
in section 103(f) of the Consumer Credit Protection Act
(15 U.S.C. 1602(f)), that makes or
invests in residential real estate loans aggregating more than
$1,000,000 per year. For purposes of this definition, the term
"creditor" does not include any agency or instrumentality of any
State, and the term "residential real estate loan" means any loan
secured by residential real property, including single-family and
multifamily residential property;
(E) Is originated either by a dealer or, if the obligation is to
be assigned to any maker of mortgage loans specified in paragraphs
(1)(ii)(A) through (D) of this definition, by a mortgage broker; or
(F) Is the subject of a home equity conversion mortgage, also
frequently called a "reverse mortgage," issued by any maker of
mortgage loans specified in paragraphs (1)(ii)(A) through (D) of this
definition.
(2) Any installment sales contract, land contract, or contract
for deed on otherwise qualifying residential property is a federally
related mortgage loan if the contract is funded in whole or in part by
proceeds of a loan made by any maker of mortgage loans specified in
paragraphs (1)(ii)(A) through (D) of this definition.
(3) If the residential real property securing a mortgage loan is
not located in a State, the loan is not a federally related mortgage
loan.