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#1423282 - 08/03/10 02:57 PM Owner Occupancy/Non Natural Person
raitchjay Offline
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I have a mess of a loan (actually 3 different loans, but that's a different story) i'm looking at: Individual (woman) consolidating/refinancing dwelling secured loans (her primary dwelling as well as a few rentals and also some commercial property), but the loan is in the name of a D.D.S. name with a TIN. How do i report owner occupancy? (On the same issue.....looking at the GIR, there is language about using "not applicable" if a multi-family dwelling, NOT LOCATED IN A METROPOLITAN AREA, or located in a metropolitan area IN WHICH THE INSTITUTION HAS NEITHER A HOME NOR BRANCH OFFICE. We are only a HMDA reporter at all because we opened a branch in Texas in an MSA....does this mean for any HMDA loan we originate outside of this Texas MSA, we could be putting "NA" for owner occupancy?) Thanks.
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#1423304 - 08/03/10 03:16 PM Re: Owner Occupancy/Non Natural Person raitchjay
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Yes. You can also put NA in the Census/MSA/County fields too. You are only required to report that information for loans in the MSA you have an office in.

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#1423309 - 08/03/10 03:18 PM Re: Owner Occupancy/Non Natural Person Truffle Royale
raitchjay Offline
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Thanks Truffle. I haven't been utilizing that ability on owner occupancy....am kinda averse to starting mid-year. So if i wanted to report the occupancy on this one, what would you put? The owner of the house, the individual, does live in it, but the "individual" isn't getting the loan, the D.D.S. is. (I do utilize the ability to put "NA" already on the geocoding information, for loans outside of the MSA where we have an office.)
Last edited by raitchjay; 08/03/10 03:23 PM. Reason: fix my spelling
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#1423319 - 08/03/10 03:24 PM Re: Owner Occupancy/Non Natural Person raitchjay
raitchjay Offline
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I should clarify....the individual does live in "one" of the homes...like i said...there are multiple homes on this loan.
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#1423604 - 08/03/10 07:54 PM Re: Owner Occupancy/Non Natural Person raitchjay
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Bump...I have the same scenario today!

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#1423623 - 08/03/10 08:09 PM Re: Owner Occupancy/Non Natural Person Luvinit
Dan Persfull Offline
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Is a "D.D.S." registered as an entity of its own or is the loan to Jane Dentist, D.D.S. (I am assuming this is a dentist due to the D.D.S. designation).

If so then IMO this would be the same as making a loan to a sole proprietorship, which is to the individual. If she is incorporated then your loan is not to a natural person.

So the answer to your question lies in the answer to whether she's acting as a sole proprietor or a corporation, LLC, etc.


Ps. For the occupancy status, with the exception of multi-family dwellings, we always report the occupancy status. How you report this one will depend on which property your report. You have the option to report just one, or you can report them individually with their own unique identifier and allocating the loan amount among them. If you report separately then you report the actual status for each unit reported.
Last edited by Dan Persfull; 08/03/10 08:13 PM. Reason: Add additional comment.
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#1423630 - 08/03/10 08:15 PM Re: Owner Occupancy/Non Natural Person Dan Persfull
raitchjay Offline
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Dan..i should have spelled that out more clearly.....it is a corporate designation and the articles of incorporation are present. So, in that case...."NA" for owner occupancy?
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#1423636 - 08/03/10 08:19 PM Re: Owner Occupancy/Non Natural Person raitchjay
Dan Persfull Offline
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That's your option as long as it falls within the exemptions. As I said we always report occupancy status unless it's a multi-family dwelling. In the case of a non-natural person the occupancy status for us would be non-owner occupied.
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#1423648 - 08/03/10 08:34 PM Re: Owner Occupancy/Non Natural Person Dan Persfull
raitchjay Offline
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Dan....is it my option because of the MSA issue (not in an MSA where we have a branch) or because of the non-natural person part? As i stated, 80% of all of our HMDA loans are outside that MSA, but i normally report owner occupancy. I guess i don't want to use the MSA as my reason, as that would be contrary to what we've done this entire year. Am i basically ok reporting it either way?
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#1423666 - 08/03/10 08:45 PM Re: Owner Occupancy/Non Natural Person raitchjay
Dan Persfull Offline
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The NA allowance for occupancy status is only applicable to loans secured by a multi-family dwellings or dwellings not located in a MSA or located in a MSA where you do not have an office.

All other loans you must report the occupancy status.


Quote:
Am i basically ok reporting it either way?


Yes, however I suggest consistency and not to change during a reporting year.

Last edited by Dan Persfull; 08/03/10 08:48 PM. Reason: Add additional comment.
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#1423675 - 08/03/10 08:49 PM Re: Owner Occupancy/Non Natural Person Dan Persfull
raitchjay Offline
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OK
Thanks Dan.
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#1423682 - 08/03/10 08:55 PM Re: Owner Occupancy/Non Natural Person raitchjay
Dan Persfull Offline
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Welcome.

Re-read the original post, for some reason I read the need for GMI in there some where...must of still had another thread in my head...anyway that is why I posted the following...


So the answer to your question lies in the answer to whether she's acting as a sole proprietor or a corporation, LLC, etc.

This was suppose to be in reference to the "phantom" GMI question and is most likely what caused the confusion about using NA for occupancy status for a natural person vs a non natural person.
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#1423696 - 08/03/10 09:03 PM Re: Owner Occupancy/Non Natural Person Dan Persfull
raitchjay Offline
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Ah, i see. Yes, that clears it up for me. Thanks.
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#1423708 - 08/03/10 09:20 PM Re: Owner Occupancy/Non Natural Person raitchjay
raitchjay Offline
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One last clarification: If all the facts for this loan were as i stated EXCEPT--it WAS in an MSA where we have a home office....then no choice: report the owner occupancy....correct?
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#1423709 - 08/03/10 09:23 PM Re: Owner Occupancy/Non Natural Person raitchjay
raitchjay Offline
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I think i get messed up because i think of the LLC (or whatever the title is) and think....how can an LLC occupy a home?
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#1423914 - 08/04/10 02:00 PM Re: Owner Occupancy/Non Natural Person raitchjay
Dan Persfull Offline
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Quote:
and think....how can an LLC occupy a home?


Exactly! That's why you report it as non-owner occupied.

The only time you have the option to report NA for occupancy is in the case of a multi-family dwelling or the property is not located in a MSA or a MSA where you do not have an office.
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#1425630 - 08/06/10 08:20 PM Re: Owner Occupancy/Non Natural Person Dan Persfull
raitchjay Offline
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Sorry...didn't see your last response til just now....i think i'm confusing myself on this issue now (or maybe it's just this mess of loans).....

Dan:

We have a first and second lien loan with all properties (primary residence of the person who has the D.D.S., rent homes, office space, etc.) on two different loans: the first lien loan is in the name of the D.D.S. (the loan i've been referencing in this thread) and the 2nd lien is in her name. So, the 1st lien
D.D.S. loan should be "non-owner occupied" and the 2nd lien natural person loan should be "owner occupied"? That somehow doesn't seem to jibe....it's the same home...it's the same person...it's just that in one instance she has the loan in the D.D.S. name. Maybe i'm overthinking. Thanks for your help.
Last edited by raitchjay; 08/06/10 08:25 PM.
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#1425669 - 08/06/10 08:44 PM Re: Owner Occupancy/Non Natural Person raitchjay
#12 Offline
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Remember it's asking about OWNER occupancy, not Borrower occupancy. So if the property is owned by the individual, and that individual is living there, then it should be reported as owner occupied regardless of who is on the loan.

Correct, oh HMDA gurus? smile
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#1425671 - 08/06/10 08:46 PM Re: Owner Occupancy/Non Natural Person #12
raitchjay Offline
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I have both loans currently coded as "owner occupied", but have gotten myself confused on the issue now. My thinking was along those lines #12...but again...unsure now. To me, that's why this is a weird deal....evidently the property is owned by BOTH the natural person and the D.D.S.,......right? Otherwise, how can each pledge the collateral on the two separate loans?
Last edited by raitchjay; 08/06/10 08:51 PM.
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#1425687 - 08/06/10 08:56 PM Re: Owner Occupancy/Non Natural Person raitchjay
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Owner Occupancy. Indicate whether the property to which the loan or loan application relates is to be owner-occupied as a principal residence by entering the applicable code from the following......

The property is owner occupied regardless of who the borrower may be.
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