Is a property used as rental property supposed to be HMDA or CRA? The property is not secured by the borrower's principal residence.

Thanks

If it is a loan on residential property and meets the definition of purchase, refinance, or home improvement under Reg C - it's HMDA.

If the property securing the loan is a 1-4 family dwelling, it would be reported on the HMDA report. In the column "owner occupancy", you would report a "2" (not owner-occupied).

OK, I am new to HMDA. Keep that last sentance in mind. Why is it that a purchase of a 1 to 4 family residence that is a temporary loan is not HMDA? I am confused. Are both loans not for the purpose of a business.

Keep me in line, I will get this HMDA stuff down soon enough.

Thanks

According to page 9 of the Getting It Right guide, temporary financings are not reported under HMDA.

I strongly advise you to get a copy of the GIR guide, if you don't already have one. Click here to access the page from which you can download a .pdf copy of the guide.

Printing it as we speak. Thanks for the documentation.

You're welcome! Happy reading!

Be careful about the temporary financing bit. There have been a number of threads in the lending forum regarding what actually consistutes "temporary". (Hint: it has nothing to do with term!) I suggest you search "temporary" and put Dan Persful in the username box.

As Steve said, "Happy reading!"

As bjp mentions, be VERY careful. WHile the "house" is a business venture for the landlord, people still live there, which leads to HMDA. If you screw up your CRA LR you have some issues, but if you screw up the HMDA LAR...well you get to pay money for the effort And that's YOUR money, not the bank

When you're downloading the GIR for CRA, be sure to download the current GIR for HMDA. If you don't have a HMDA officer to help you out....quit EVERYTHING you're doing and learn HMDA RIGHT NOW!!! It's a priority if you are making the determinations.