Per the "Getting It Right" HMDA guide:

Farm loan. A loan to purchase property used primarily for agricultural purposes is not a home purchase loan even if the property includes a dwelling. An institution may use any reasonable standard to determine the primary use of the property, such as by reference to the exemption from regulation X (Real Estate Settlement Procedures, 24 CFR 3500.5(b)(1)) for a loan on property of 25 acres or more. An institution may select the standard to apply on a case-by-case basis.

Per RESPA:

(b) Exemptions.
(1) A loan on property of 25 acres or more.

So, can we exempt all loans of 25 acres or more from HMDA? I was under the impression it still had to be primarily for agricultural use, but the more I read into it, it sounds like we can simply use the standard that if it is 25 acres or more it is exempt from HMDA.

Thoughts?

Previous Discussion

You should read Dan's link to previous discussion. Since I wasn't involved in that specific discussion, I'll add my comments from other previous discussions:

1. Forget the 25 acres. As #12 referenced, I grew up on a 10 acre hog farm. It was absolutely a farm. The point is "what the land used for?" If it's a farm, the amount of aces don't matter. If it's more then 25 acres, that doesn't make it a farm either. It could just be a large lot.

2. As hmdagal stated, this exemption is only for purchases. But more, the amount of acres isn't really a factor. I grew on a 10 acre hog farm. It was absolutely a farm, but not 25 acres or more. Where I now live, there is a 40 acre piece of land owned by a man from Minneapolis. He hunts deer, ducks, etc., but doesn't farm it. It's really his cabin and hunting land. Just because it's more then 25 acres doesn't make it a farm.

3. It must FIRST be for the purpose of "Agricultural purposes". This loan does not meet that criteria. IF it is an agricultural loan, Reg C is trying to help you determine what that means with the 25 acre comment.

I have an additional question here....I've read in the guide to getting it right, that a refinancing means a new obligation that satisfies and replaces and exisitng obligation by the same borrower in which: (1) for coverage purposes, the EXISTING OBLIGATION IS A HOME PURCHASE LOAN (as determined by the lender) and both the existing obligation and the new obligation are secured by first liens on dwellings; and (2) for reporting purposes, both the existing obligation and the new obligation are secured by liens on dwellings.

So, if I have a loan that is not a home purchase loan, because of the agricultural exemption, when I refinance this debt, is it exempt from being reported as a "refinancing" since the existing obligation is NOT a home purchase loan?

We've always reported as a refi, but this just struck me today.....

So, if I have a loan that is not a home purchase loan, because of the agricultural exemption, when I refinance this debt, is it exempt from being reported as a "refinancing" since the existing obligation is NOT a home purchase loan?

That's an incorrect assumption. (1) that you quoted above is the coverage test for the financial institution. If the financial institution is covered under (1) then they must report refinancings based on (2)'s criteria.

I'm pretty sure I know the answer but just want to confirm.
We are purchasing 300+ acres for cattle and refinancing a home.

HMDA would still apply for the refi of the home, even though the majority of the money is going towards AGRI land purpose, correct?

The ag exception only applies to purchases, so you are correct.

thank you, I can never be too sure of myself lol

HMDA never considers the majority of funds.