Is occupancy tied to the purpose or the property securing the loan?
I have a customer taking out cash from their existing home (owned free and clear, nothing refi'd) to be used for the stated purpose of buying a rental property. If they hadn't stated it, it would be a personal use loan and we have no info or security on the rental to be purchased.
I understand I would report the location of the existing home securing the loan. But they are not purchasing it, so does the loan "relate" for occupancy to the the non-owner occupied rental? Otherwise the data would suggest that they are purchasing their primary residence, and that doesn't seem right.
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