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#1873729 - 11/22/13 06:22 PM Owner Occupancy
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
I looked on the threads and couldn't find an answer, probably because this question is really dumb...please bear with me.

I have a construction to permanent one-step loan. What is the correct way to report occupancy? I am getting confused because they are not going to live it the dwelling as it is being built but then they will be living in it after the construction phase. When reporting for HMDA is it that snapshot in time, or do we have to consider the permanent?

Thanks
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#1873743 - 11/22/13 06:57 PM Re: Owner Occupancy Bec
raitchjay Offline
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Joined: Oct 2009
Posts: 8,721
OK
We don't do combined construction-perm loans, but if we did, i'd report the planned occupancy upon completion.....after all, if you considered the construction phase alone, the loan wouldn't even be reportable. Hope that helps.
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#1873835 - 11/22/13 09:18 PM Re: Owner Occupancy Bec
MMontjoy01 Offline
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MMontjoy01
Joined: Apr 2008
Posts: 47
NC, USA
We do combined construction to perm loans and we report the occupancy status for the permanent part of the loan. If your loans are like ours, it typically is owner occupied.

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#1873887 - 11/22/13 10:11 PM Re: Owner Occupancy Bec
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,762
Bloomington, IN
From the GIR:

Indicate whether the property to which the loan or loan application relates is to be owner-occupied as a principal residence . . .
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#1877360 - 12/10/13 04:41 PM Re: Owner Occupancy Bec
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Thank you for your responses!
Another question tied to this scenario.
What term would you use for rate spread? Would you use only the initial construction phase, only the permanent phase or the whole thing added together?

Thanks again for your help
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#1877403 - 12/10/13 05:52 PM Re: Owner Occupancy Bec
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,762
Bloomington, IN
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#1877428 - 12/10/13 06:18 PM Re: Owner Occupancy Bec
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Thank you Dan!
You'd think as much time as I spend on here I would be able to search effectively. STill have my issues.
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