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#1970531 - 10/20/14 04:13 PM Uninhabitable dwelling
ADN Offline
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Joined: Mar 2007
Posts: 205
We have a farm loan where the paid off portion of the collateral is 2,000 acres with a semi uninhabitable house. The farmer has not lived in the old house and in the future has no intention of renting or living in it. Does this matter for hmda? I'm trying to decide if I have a refinance for hmda.

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#1970544 - 10/20/14 04:49 PM Re: Uninhabitable dwelling ADN
ForceFull1 Offline
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ForceFull1
Joined: Nov 2003
Posts: 246
smalltown Iowa
I have in my HMDA file a conversation I had several years ago with an FDIC examiner. In short, if a structure can't be dwelt in, it's not a dwelling. So in your scenario you don't have a reportable loan.

The one caveat to keep this answer from applying to all scenarios would be a loan whose proceeds will be used to repair an uninhabitable structure, in which case you would have a home improvement loan on your hands.

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#1970547 - 10/20/14 05:01 PM Re: Uninhabitable dwelling ADN
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
semi uninhabitable house

Huh???

In short, if a structure can't be dwelt in, it's not a dwelling.

From 1003.2

Dwelling means a residential structure (whether or not attached to real property) located in a state of the United States of America, the District of Columbia, or the Commonwealth of Puerto Rico. The term includes an individual condominium unit, cooperative unit, or mobile or manufactured home.

Where in the above definition of a dwelling does it say a residential structure has to be inhabitable to meet the definition of a dwelling.

An uninhabitable dwelling (residential structure) is still a dwelling by regulatory definition.
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#1970654 - 10/20/14 09:12 PM Re: Uninhabitable dwelling ADN
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I agree with ForceFull1's (& the FDIC Examiner's) comment. A dwelling is where someone does or will dwell. I think it would be best to clarify your statement "semi uninhabitable house", however. It's either a dwelling or it's not. If it isn't (which is the way you describe it when you say "in the future has no intention of renting or living in it"), then it's not a dwelling. It's a building that no one dwells in or will dwell in.

Don't call it a "semi uninhabitable house". Call it a non-dwelling building.
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#1970674 - 10/20/14 09:55 PM Re: Uninhabitable dwelling ADN
Rocky P Offline
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Joined: Jun 2003
Posts: 7,459
Florida
No comment whether or not HMDA applies, but - - -

There was a post a few years ago about a dwelling being uninhabitable, broken doors, dirt floor, etc. When the banker went back to inspect the place a few months later, someone was living in it.
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#1970902 - 10/21/14 07:23 PM Re: Uninhabitable dwelling ADN
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Then that would be a dwelling Rocky. Someone dwells in it. I can dwell in a box or a camper or my boat and they certainly may be dwellings under today's definition, but if the borrower tells you they have no intentions to dwell there (or allow someone else to dwell there), then it's not a dwelling per the best of you knowledge.
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