We have a mixed loan collateralized by 1 piece of commercial real estate and 1 piece of multi-family real estate. The loan purpose is to establish a business line of credit, but it is listed as a refinance on the LAR due to the multi-family having a prior lien from our Bank.

The question I have is would this loan even need to be reported since it is collateralized by both Commercial RE and Residential RE? Would this be a case where we can use a "reasonable test" to determine the property use?

If it's an open-end line of credit, it would be optional reporting under the HELOC rules. I think the mixed use test refers to individual properties that have both residential and commercial purposes, not separate properties one of which has a residential use and the other having commercial purpose. So, to my way of thinking, if your bank doesn't report HELOCs, you wouldn't report this one. If your bank does report HELOCs, you would have to report this one.

This loan isn't a HELOC as it is business purpose. We don't report true HELOC's, but if it is a business loc secured by residential real estate we would report.

For HMDA purposes, a line of credit is a line of credit. If you don't report HELOCs, you shouldn't report business LOCs either.

RJ types faster than I do. Ditto what he said.

Thanks!