I have a loan secured by two manufactured investment properties (old detached single wides) and 30 storage units all located on the same property. The mobile homes are detached but we are taking theland as collateral with all units. All were appraised together under one commercial appraisal. Individual values have not be identified.

The loan is to a business that will lease out the storage units and rent the mobile homes to tenants.

This is a purchase transaction.

How do I report this? I cannot find it in HMDA Getting it Right or CRA Getting it Right.

tg, you can use any reasonable standard to determine the primary use of a mix-use property. In this instance, where is the majority of the square footage, in the mobiles or the storage units?

Or, where does more of the income generated come from, the mobiles or the storage? Or, the majority of the value of the property?

If the storage outweighs the mobiles you do not report it. You can use any one of these measures to determine reporting status, just be sure to document the reasons why you either reported or did not.

Sorry, I don't have a section # from the reg to quote off of the top of my head though.

I am going to disagree Boatn. I believe the mixed use property only applies when they are all in one building. In this case, the dwellings are separate buildings. IMHO, this is a HMDA purchase loan.

Mixed use property is discussed on page D-5 of the GIR.

In this case tg would have to determine what the reasonable standard would be in determining the primary use of the property.

It sounds as though this property is all on one parcel and not being purchased as seperate pieces of property so what would the difference be if they were all under one roof or not?

See this thread. Both Dan & hmdagal say that if the dwelling is separate, the mixed use stuff doesn't apply.

I'll confirm that this would be HMDA reportable. I'm not very familiar with CRA, but believe that transactions that are HMDA reportable can also be reported on the CRA-LR if both apply.

The MHs are individual 1-4 family structures. They are being used as such, therefore how can you make a reasonable determination, either by square footage or income, that they are not dwellings? That is their only use.


I'm not a CRA reporter but maybe the following will be of some help:

http://www.fdic.gov/news/news/financial/2005/fil2905a.html

As we noted in the supplementary information section of the joint interim rule, because of the change in the Regulation C definition, loans to refinance small business or small farm loans, where a dwelling continues to serve as collateral solely through an abundance of caution, will now be reportable as refinancings under Regulation C. Those loans will also be reportable for Call Report and Thrift Financial Report purposes as small business or small farm loans, resulting in the potential for ``double counting'' of these loans in CRA examinations. See 69 FR 41184-85.

An example is given of a building housing both commercial and consumer purposes but I don't see anywhere that it's stated that it has to be in one building. It says property...and case by case basis.

And on the CRA note....I wouldn't report it for CRA. It's secured by SFR's. Unless of course you track those for consideration.

So Rizzy, if I have a property that I have a 15,000 square foot barn on that I keep grain and other farm equipment in and I take out a loan to buy a 14 X 80 MH and secure that loan with the MH and place it on the same property that the barn is located for my son to move into and live in to help me farm you would not report that as a home purchase becaue the barn's, which is used for ag puposes, square footage is greater than the square footage of the MH?

I guess it would be a matter of interpretation. I see your point but it really isn't clearly defined...property, building...
This is why I love (loathe) HMDA!
I just see scenario #1 as purchasing property which is mainly to be used for commercial purposes.
#2 is purchasing a property to be used for consumer purposes. Despite the farm going on...the purpose of the loan is to purchase the dwelling NOT purchasing tons of commercial use structures whose square footage and income dwarf that of the 2 mobile homes also on the property.

Have you ever noticed that when HMDA refers to land it generally refers to "land" or "real property" instead of just property? You will find that references in HMDA use "property" and "dwelling" interchangeably. But I agree with you on the "ambiguity" of its use.

Regardless what the primary use of the "real property" or the other structures located on the property are used for the fact remains part of the proceeds are being used to purchase a dwelling and is secured by a dwelling. Under the reasonable test allowance I can't see where you can discount the MHs as being dwellings.

I purchase a "property". The lower floor has a 15,000 square foot retail space in it. The upper floor has 3 1,500 square foot apartments located on it. Now this "property" by sq footage is not a dwelling for the purposes of purchasing or refinancing, however theres a different test when it comes to home improvement.

I purchase the same "property" only this time there is one structure with the 15,000 square foot retail space, and next to it there is a separate structure that has 6 1,000 square foot apartments. Would you not consider the separate building as being a multi-family structure, regardless of the 15,000 square foot structure located next to it?

So, I just had to ask my regulator (FDIC) about this.
These were my questions:
#1 - loan secured by two manufactured investment properties (old
detached single-wide's) and 30 storage units all located on the same property. The mobile homes are detached but we are taking the land as collateral with all units. All were appraised together under one commercial appraisal.
The loan is to a business that will lease out the storage units and rent the mobile homes to tenants.
#2 - property that has a 15,000 square foot barn on it that houses grain and other farm equipment and a loan is made to buy a 14 X 80 MH and secure that loan with the MH and place it on the same property that the barn is located for a non-primary residence.

My 2 cents:
I just see scenario #1 as purchasing property which is mainly to be used for commercial purposes.

#2 is purchasing a property to be used for consumer purposes. Despite the farm going on...the purpose of the loan is to purchase the dwelling NOT purchasing tons of commercial use structures whose square footage and income dwarf that of the 2 mobile homes also on the property.

This was his response:

I totally agree with your views for each. You can use any reasonable standard to determine the primary use of the property. Each of your explanations supports your conclusions - Not HMDA for #1 and HMDA for #2 - (Closer call-don't know acreage or if bulk of property is for ag use)

Granted, everyone has different regulators and you should feel comfortable with knowing them and how they read things but at least I don't feel totally crazy now

Where's the regulatory citation for this opinion from your regulator? No where in the regulation will you find that you can consider an individual property that is a dwelling by definition not being a dwelling simply because it was purchased with 100 storage units. The definition of a home purchase is simple.

A home purchase loan is a loan for the purpose of purchasing a dwelling and secured by a dwelling.

Explain to me how you can exclude the MHs as dwellings.

Dwelling.
Dwelling means any residential structure, whether or not attached to real property. It includes vacation or second homes and rental properties; multifamily as well as one-to-four-family structures; individual condominium and cooperative units; and manufactured and mobile homes. It excludes recreational vehicles such as boats and campers, and transitory residences such as hotels, hospitals, and college dormitories.

No where under the regulation can you support excluding the MHs as dwellings. What if they were moving the MHs to a different "property" such as a MH park to use as residential rental units? Would you still exclude them as a dwelling purchase?

I have to stand firm on my opinion on this one.

BTW, I'm also FDIC.

I think the key word is opinion....

I won't comment on the HMDA part but the loan is not CRA reportable because of the dwellings.

I won't comment on the HMDA part but the loan is not CRA reportable because of the dwellings.