I agree with Duchess. A non-person cannot occupy a dwelling.
Also, keep in mind that you have to look at who is actually the owner of the property. If the home is in fact the member's house and he is placing the home up for collateral for the business loan, then it would be "owner occupied" as the business does not own the property, the member does. The question you have to answer is: "Who is the trueowner of the property?"
Adam Witmer, CRCM
All statements are my opinion, not those of my employer, and should not be taken as legal advice.www.compliancecohort.com