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#314302 - 02/09/05 04:54 PM HMDA- home improvement?
starfish Offline
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starfish
Joined: Jun 2003
Posts: 416
Seattle
We have a loan to fund the construction of a 1500 sq ft building on residential property for a day care- the loan will be secured by a lien on the customer's dwelling. I'm thinking this would be a home improvement loan because it's improving the value of the residential property? Am I correct?

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#314303 - 02/09/05 05:57 PM Re: HMDA- home improvement?
GreatBlue Offline
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GreatBlue
Joined: Feb 2003
Posts: 2,362
Colorado
"1500 sq ft building on residential property for a day care"

Expand on this a little. Is it one property where there's a home and they are also building a separate building for the day care?
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#314304 - 02/09/05 06:13 PM Re: HMDA- home improvement?
starfish Offline
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starfish
Joined: Jun 2003
Posts: 416
Seattle
yes...there is already a home on the property and they are constructing an additional building on the property to be used for daycare.

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#314305 - 02/09/05 07:02 PM Re: HMDA- home improvement?
GreatBlue Offline
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GreatBlue
Joined: Feb 2003
Posts: 2,362
Colorado
Good question. I did a quick search and it looks like a similar question has been discussed a couple of times. There was not a strong consensus, but the general thinking seemed to be that it would be considered improvement to the real property and therefore reportable as a home improvement.
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Opinions are mine and not necessarily my employer's.

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#314306 - 02/09/05 07:16 PM Re: HMDA- home improvement?
starfish Offline
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starfish
Joined: Jun 2003
Posts: 416
Seattle
Thanks for your response- I'm going to report it for HMDA.

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