Certification of Business Purpose

Borrower attestation confirming subject property financing is strictly for commercial or business investment purposes exempt from Truth in Lending (TILA/RESPA).

Category: Borrower Forms
Format: Fillable PDF Form
Version: v09.26
Applies To: DSCR / BANK STMT / BUSINESS PURPOSE

Packaging & Submission Instructions

Originator Guidance: Complete and execute this form prior to upload with the initial loan submission package in the Corva Wholesale Broker Portal or Fannie Mae Desktop Originator.

Ensure all borrower signatures, entity documentation (for LLC or corporate borrowers), and applicable disclosures match the 1003 loan application. For assistance packaging this document, contact the Corva Broker Operations Desk at [email protected].

Form Description & Requirements

Statutory Background & Legal Framework

The Corva Certification of Business Purpose is a foundational regulatory document executed by all borrowers originating Business Purpose, DSCR, and non-owner occupied investor loans. Under federal law (12 CFR § 1026.3(a) of Regulation Z and 12 U.S.C. § 2606 of the Real Estate Settlement Procedures Act), extensions of credit primarily for business, commercial, or agricultural purposes are completely exempt from consumer Truth in Lending disclosures, ATR/QM rules, and TRID disclosure timing requirements.

Borrower Affirmations & Warranties

By signing this document, the borrower and borrowing entity explicitly certify under penalty of law that:

  1. The proceeds of the loan will be used exclusively for commercial real estate acquisition, portfolio investment, or business expansion.
  2. Neither the borrower, any guarantor, nor any immediate family member occupies or intends to occupy the subject real property as a primary or secondary residence.
  3. The loan is not a consumer credit transaction subject to state consumer lending rate caps or consumer disclosure mandates.