Skip to content
BOL Conferences
Thread Options
#1328024 - 01/21/10 04:16 PM Commerical Loan Secured by Primary Residence
Soccer Offline
Diamond Poster
Joined: Jan 2010
Posts: 1,028
Utopia
Is a commercial loan secured by the borrowers primary residence a HMDA Reportable Loan. Can you provide the reference to REG C for your answer.
_________________________
Everything happens for a reason

Return to Top
HMDA

   
HMDA Academy
#1328065 - 01/21/10 04:37 PM Re: Commerical Loan Secured by Primary Residence Soccer
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
if the initial loan is not to purchase, refinance or improve a residence, the initial loan is not HMDA reportable. Refer to the definition of application for HMDA purposes:

"Application. (1) In general. Application means an oral or written request for a home purchase loan, a home improvement loan, or a refinancing that is made in accordance with procedures used by a financial institution for the type of credit requested."

More detail is provided in the HMDA Getting It Right Guide and FAQs.

A commercial loan secured by residential real estate is reportable when it is refinanced. Refer to the definition of refinance.

"Refinancing means a new obligation that satisfies and replaces an existing obligation by the same borrower, in which:
(1) For coverage purposes, the existing obligation is a home purchase loan (as determined by the lender, for example, by reference to available documents; or as stated by the applicant), and both the existing obligation and the new obligation are secured by first liens on dwellings; and
(2) For reporting purposes, both the existing obligation and the new obligation are secured by liens on dwellings."
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1328430 - 01/21/10 08:48 PM Re: Commerical Loan Secured by Primary Residence Kathleen O. Blanchard
Relax Offline
Platinum Poster
Joined: Jul 2007
Posts: 571
We report ANY loan (commercial or ag or residential, etc etc) that falls under the 3 purposes of HMDA. We have tons of commercial loans that are secured by borrowers primary residence, and if the purpose is to purchase a rental house or if any of the funds are for improving a dwelling secured property, or if any of the funds are paying off and replacing another dwelling secured loan (any dwelling sec. loan) then it is reportable. Hope this helps.
_________________________
"I like a little rebellion now and then. It is like a storm in the atmosphere." -Thomas Jefferson

Return to Top
#1328715 - 01/22/10 02:34 PM Re: Commerical Loan Secured by Primary Residence Relax
RR Becca Offline
Power Poster
RR Becca
Joined: Sep 2004
Posts: 5,249
out of the frying pan...
I was informed by an examiner that ANY new note that replaces an existing one against a residence qualifies as a refi for HMDA, regardless of original purpose. We report accordingly.
_________________________
You call it ADD. I call it multi-tasking.

Return to Top
#1328880 - 01/22/10 04:25 PM Re: Commerical Loan Secured by Primary Residence RR Becca
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
That is why business loans that are secured by a residence are reportable as a refinance, even when the original loan was not reportable.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1329007 - 01/22/10 05:26 PM Re: Commerical Loan Secured by Primary Residence Kathleen O. Blanchard
RR Becca Offline
Power Poster
RR Becca
Joined: Sep 2004
Posts: 5,249
out of the frying pan...
I missed that sentence in your answer, Kaybee. Serves me right for reading too fast. smile
_________________________
You call it ADD. I call it multi-tasking.

Return to Top
#1329082 - 01/22/10 06:19 PM Re: Commerical Loan Secured by Primary Residence RR Becca
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Well, the reporting makes no sense anyway! whistle
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top

Moderator:  SMQ, CRCM