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#1651963 - 01/18/12 02:01 PM Reportable?
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
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?

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#1651967 - 01/18/12 02:04 PM Re: Reportable? Many Hats
Dan Persfull Online
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Dan Persfull
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Bloomington, IN
If you classify it as a HI loan then it would be reportable and the occupancy would be non-owner occupied.
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#1651968 - 01/18/12 02:18 PM Re: Reportable? Many Hats
rlcarey Offline
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rlcarey
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Galveston, TX
If you code it internally as a home improvement loan, yes. If the family member lives in the house, the property is owner occupied.
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#1651969 - 01/18/12 02:06 PM Re: Reportable? Many Hats
Dan Persfull Online
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Dan Persfull
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Bloomington, IN
If the family member lives in the house, the property is owner occupied.

Agreed. I made the assumption they did not.
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#1651973 - 01/18/12 02:11 PM Re: Reportable? Many Hats
Many Hats Offline
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Orlando, FL
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)?

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#1651974 - 01/18/12 02:13 PM Re: Reportable? Many Hats
#12 Offline
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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.
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#1651985 - 01/18/12 02:23 PM Re: Reportable? Many Hats
Many Hats Offline
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Orlando, FL
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?

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#1651991 - 01/18/12 02:40 PM Re: Reportable? Many Hats
hmdagal Offline
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hmdagal
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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.

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