I have a loan where they have purchased a Commercial bldg., and our collateral is the commercial bldg., and a 2nd on their P/R, and a 2nd on one of their I/P.

Would this loan be reportable since the purpose of the loan is to purchase commercial property, even though we have taken additional collateral and they are both dwellings?

Thanks.

No, you have no HMDA reportable purpose.

Even though there are 2 pieces of collateral that are residential dwellings?

Correct. Not every loan secured by a dwelling is HMDA reportable. If you don't have a home purchase, a refinance (a dwelling-secured loan satisfying and replacing a dwelling-secured loan) or home improvement as a purpose of your loan, it isn't reportable.

I agree with raitchjay, this is not HMDA Reportable.

Remember the following definitions from REG C:

Home purchase loan means a loan secured by and made for the purpose of purchasing a dwelling.

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.

As NSFW points out, HMDA must meet the Collateral AND the Purpose test. The exception is HI loans (purpose) that are classified as a HI loan.

The proposed rules (probably not effective until 1/1/17) would capture the scenario you describe but not today's rules.

Thanks for all the information.

Ok, I'm back at this...I'm wanting to be sure I understand this correctly...
I have a loan where they are taking a 2nd on their P/R (and we have the 1st), because they need cash out for funeral expenses...is this HMDA reportable?

Based on what you have stated, no.

The loan purpose does not meet the definitions of purchase, refinance or improvement proved by the regulation.

Home purchase loan means a loan secured by and made for the purpose of purchasing a dwelling.

Home improvement loan means:

(1) A loan secured by a lien on a dwelling that is for the purpose, in whole or in part, of repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which it is located; and

(2) A non-dwelling secured loan that is for the purpose, in whole or in part, of repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which it is located, and that is classified by the financial institution as a home improvement loan.

Refinancing is any dwelling-secured loan that replaces and satisfies another dwelling-secured loan to the same borrower. For reporting purposes, both the existing obligation and the new obligation must be secured by liens on dwellings.

Thank you.