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HMDA Reporting - Commercial Loan Refinancing
Answer by David Dickinson, BOL Guru
Guru Bio
Question: The bank made a commercial loan that included a 1-4 family dwelling as an abundance of caution. The commercial customer is now refinancing the commercial loan and the 1-4 family dwelling will again be part of the collateral package. Should the loan be reported on HMDA as owner occupied? The owner of the property is occupying the dwelling, however, the vesting of the property is not in the borrower's name. If it is owner occupied would government monitoring be required?
Answer: The short answer is yes. On page 12 of the HMDA GIR, it states: Occupancy. For a one-to-four-family dwelling, including a manufactured home, indicate whether the property to which the loan or application relates will be the owner’s principal dwelling. For multifamily dwellings (housing five or more families) and for any dwellings located outside MSAs or in MSAs where you do not have home or branch offices, you may enter either the code for not applicable or the code for the occupancy status. For more information, see Appendix A, I.A.6, and staff comment 203.4(a)(6)-1. This is used to state the borrower's, not the owner's principal dwelling. The only difference would be if a third party pledges a house (which is what you are describing). This would not be borrower occupied, but would be owner occupied. You are reporting the borrower's information, therefore, even in the situation you describe you should not collect or report GMI.
First published on BankersOnline.com 5/05/08
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