Applicant requests a loan to make some home improvements and pay off some other debts. She does not own the property (a family member does). Would you report this as a non owner occupied home imp loan that is not secured by a lien?

If you classify it as a HI loan then it would be reportable and the occupancy would be non-owner occupied.

If you code it internally as a home improvement loan, yes. If the family member lives in the house, the property is owner occupied.

If the family member lives in the house, the property is owner occupied.

Agreed. I made the assumption they did not.

Ok so if its a cousin that owns the house, it is owner occupied. If it turns out that she rents it, its non owner occupied.

And, it would not be secured by a lien either way (since she is not on title)?

For owner occupancy, you need to ask Who owns the house? and Who lives in the house? If they match, it is owner occupied. It doesn't matter who the borrower on the loan is.

Ok..and what about the lien status? If the owner doesn't intend to mortgage the house, would you consider it not secured by a lien?

Yes. If a mortgage isn't taken, it would be not secured by a lien. Again, your bank must have a system to classify unsecured loans as home improvement for this to be reportable.