Thread Options
|
#1508096 - 02/10/11 05:24 PM
Refinance of dwelling on 25+ acres
|
Member
Joined: Apr 2008
Posts: 55
|
Help...would we report a refinance of a dwelling on 680 acres. It is not "farmland". Does the farmland exemption include anything over 25 acres (as in Respa)? And does the exemption only apply to home purchase loans?
Thank you in advance for ANY help!!
|
Return to Top
|
|
|
|
#1508144 - 02/10/11 06:10 PM
Re: Refinance of dwelling on 25+ acres
azbanker
|
Power Poster
Joined: Oct 2009
Posts: 9,232
OK
|
HMDA only gives an agricultural exemption for purchases. Refinances are not exempt. There is a difference of opinion on whether you can simply use the 25 acre exemption on purchases or whether you have to actually discern an agricultural purpose, so i'd say be consistent.
_________________________
I'm fixin' to fix that.
|
Return to Top
|
|
|
|
#1508241 - 02/10/11 07:41 PM
Re: Refinance of dwelling on 25+ acres
raitchjay
|
Member
Joined: Apr 2008
Posts: 55
|
|
Return to Top
|
|
|
|
#1590275 - 08/10/11 06:30 PM
Re: Refinance of dwelling on 25+ acres
azbanker
|
Junior Member
Joined: Jun 2008
Posts: 25
|
What if the customer is refinancing his primary residence to purchase 84 acres of farmland?
Thanks
|
Return to Top
|
|
|
|
#1590321 - 08/10/11 07:12 PM
Re: Refinance of dwelling on 25+ acres
3up3down
|
Power Poster
Joined: Oct 2009
Posts: 9,232
OK
|
Reportable as a refinance. (On the flip side, if they owned the home free and clear and were using it as collateral for a loan to purchase the 84 acres of farmland, that would be exempt as an ag. purchase.) I don't read the ag. loan exemption as pre-empting the definition of a reportable refinancing.
Last edited by raitchjay; 08/10/11 07:14 PM.
_________________________
I'm fixin' to fix that.
|
Return to Top
|
|
|
|
#1590420 - 08/10/11 08:38 PM
Re: Refinance of dwelling on 25+ acres
raitchjay
|
Gold Star
Joined: Mar 2010
Posts: 273
|
We have a situation were the borrower purchased a dwelling and 40 acres. The lender coded the loan as agricultural because the borrower will use the 40 acreas for his cows. However, he plans to resale the dwelling. The loan is set up as a single pay for seven months. We are considering this as short term financing because the borrower does not intend to place this on permanent financing. He is confident the dwelling will sell within the seven month time frame.
Will this be consider a agri loan and exempt from HMDA because it was a purchased. Or, will it be consider a home purchase non owner occupied.
|
Return to Top
|
|
|
|
#1590552 - 08/11/11 01:00 PM
Re: Refinance of dwelling on 25+ acres
Dodge
|
10K Club
Joined: Aug 2002
Posts: 47,673
Bloomington, IN
|
Page D-5 of the GIR:
A loan to purchase property used primarily for agricultural purposes is not a home purchase loan even if the property includes a dwelling.
Ooops hit the submit button too early.
If the house is separate from the 40 acres then I would have to opine the purchase of the house would not be exempt as it was not part of the agricultural purchase but was an investment purchase.
Last edited by Dan Persfull; 08/11/11 01:04 PM.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1590917 - 08/11/11 07:47 PM
Re: Refinance of dwelling on 25+ acres
Dan Persfull
|
Power Poster
Joined: Aug 2006
Posts: 4,266
Chillin an grillin
|
How about: Refi of AG land that has a mobile home on it. The write up states that no value was given to MH as it was designated personal property. Would you report this as a refi? Also as an aside, this meets the definition of and appears on the call report as a small farm loan.
_________________________
HMDAHMDAHMDAHMDAHMDAHMDA
|
Return to Top
|
|
|
|
#1590918 - 08/11/11 07:52 PM
Re: Refinance of dwelling on 25+ acres
bOaty
|
10K Club
Joined: Aug 2002
Posts: 47,673
Bloomington, IN
|
A MH meets the definition of a dwelling. See Reg C 203.2(d),
The term includes an individual condominium unit, cooperative unit, or mobile or manufactured home.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1590936 - 08/11/11 08:06 PM
Re: Refinance of dwelling on 25+ acres
Dan Persfull
|
Power Poster
Joined: Aug 2006
Posts: 4,266
Chillin an grillin
|
It's the no value given to it that is throwing me off, along with the small farm issue. I'm concerned about double reporting too.
It certainly does meet the definition though.
Thank you Dan.
_________________________
HMDAHMDAHMDAHMDAHMDAHMDA
|
Return to Top
|
|
|
|
#1590980 - 08/11/11 08:39 PM
Re: Refinance of dwelling on 25+ acres
bOaty
|
Power Poster
Joined: Sep 2004
Posts: 5,249
out of the frying pan...
|
if you took the title, you'll have a hard time defening it as "no value given" regardless of what the write-up says. ETA: it would be similar to abundance of caution - everything but appraisal still applies.
Last edited by RR Becca; 08/11/11 08:40 PM.
_________________________
You call it ADD. I call it multi-tasking.
|
Return to Top
|
|
|
|
#1590990 - 08/11/11 08:44 PM
Re: Refinance of dwelling on 25+ acres
RR Becca
|
Power Poster
Joined: Aug 2006
Posts: 4,266
Chillin an grillin
|
Thanks Becca.
After digging a little deeper I see that it is a draw down line of credit. We haven't had one of these in a long time but thought that we would repor it. Having said that, I can't seem to find anything that says that draw down lines of credit are reportable.
I just found soemthing that indicates that closed end lines of credit are reportable.
Last edited by bOatn Shasta; 08/11/11 08:49 PM.
_________________________
HMDAHMDAHMDAHMDAHMDAHMDA
|
Return to Top
|
|
|
|
#1590997 - 08/11/11 08:49 PM
Re: Refinance of dwelling on 25+ acres
bOaty
|
10K Club
Joined: Aug 2002
Posts: 47,673
Bloomington, IN
|
A draw note is closed end credit, only open-end credit is optional reporting.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
|
Return to Top
|
|
|
|
#1592607 - 08/16/11 08:28 PM
Re: Refinance of dwelling on 25+ acres
Dan Persfull
|
Gold Star
Joined: Jul 2005
Posts: 394
Arkansas
|
I have one here that is provide funds for the purchase of 140 acres and a dwelling from the customer's nephew. It is secured by the land and dwelling. The term is a 20 year amortization with a 5 year balloon. It is coded at a 1C2A. There is a HMDA sheet in the file and now I am being asked if this is even reportable. Can you help, please?
|
Return to Top
|
|
|
|
#1592627 - 08/16/11 08:42 PM
Re: Refinance of dwelling on 25+ acres
Glo
|
Power Poster
Joined: Oct 2009
Posts: 9,232
OK
|
Here, i would exempt it as an ag. purchase simply based on the acreage. I believe Dan and others would say you need to document an actual agricultural purpose in order to exempt. If you have both, over 25 acres and a documented ag. purpose, then without question, it would be exempt. Here's the wording: "A loan to purchase property used primarily for agricultural purposes is not a home purchase loan, even if the property includes a dwelling. Any reasonable standard may be used to determine the primary use of the property, such as by reference to the exemption in the Real Estate Settlement Procedures Act (RESPA) for a loan on property of 25 acres or more. The institution may select the standard to apply on a case-by-case basis."
Last edited by raitchjay; 08/16/11 08:43 PM. Reason: forgot to close my quote
_________________________
I'm fixin' to fix that.
|
Return to Top
|
|
|
|
#1592653 - 08/16/11 09:02 PM
Re: Refinance of dwelling on 25+ acres
raitchjay
|
Gold Star
Joined: Jul 2005
Posts: 394
Arkansas
|
Okay, thank you for your help!
|
Return to Top
|
|
|
|
#1624722 - 11/04/11 06:55 PM
Re: Refinance of dwelling on 25+ acres
raitchjay
|
Platinum Poster
Joined: Nov 2007
Posts: 767
|
Here, i would exempt it as an ag. purchase simply based on the acreage. I believe Dan and others would say you need to document an actual agricultural purpose in order to exempt. If you have both, over 25 acres and a documented ag. purpose, then without question, it would be exempt. Here's the wording: "A loan to purchase property used primarily for agricultural purposes is not a home purchase loan, even if the property includes a dwelling. Any reasonable standard may be used to determine the primary use of the property, such as by reference to the exemption in the Real Estate Settlement Procedures Act (RESPA) for a loan on property of 25 acres or more. The institution may select the standard to apply on a case-by-case basis." Would this same rule apply if it were a refinance rather than a purchase?
_________________________
Comments are strictly my own and not that of my employer.
|
Return to Top
|
|
|
|
#1624734 - 11/04/11 06:59 PM
Re: Refinance of dwelling on 25+ acres
Still Smiling
|
Power Poster
Joined: Oct 2009
Posts: 9,232
OK
|
No. The ag. exemption is for purchases only. There is no ag. exemption for refinances.
Last edited by raitchjay; 11/04/11 07:13 PM. Reason: state 3rd sentence more accurately
_________________________
I'm fixin' to fix that.
|
Return to Top
|
|
|
|
#1624789 - 11/04/11 07:50 PM
Re: Refinance of dwelling on 25+ acres
raitchjay
|
Platinum Poster
Joined: Nov 2007
Posts: 767
|
Thanks raitchjay. I thought this was the case.
_________________________
Comments are strictly my own and not that of my employer.
|
Return to Top
|
|
|
|
|
|