If we have a purchase of an investment property, and also they refinanced their primary residence and the note used is an adjustable rate note, which we have a TIL, because we are using their primary residence as collateral as well as the investment property, would my Rate Spread be N/A even though there is an APOR?

I am reporting this as a purchase of investment for HMDA, since a purchase trumps the refinance and usually my rate spread is N/A because the note used is business note, and there is no TIL to get my APOR for the rate spread. But with this one having used the adjustable rate note because of the primary residence I am not sure if I do the rate spread for HMDA or not because I am reporting the investment property. Please help!

Thanks.

Either this is a consumer purpose loan or it is not. If it is a consumer purpose loan, then the APOR is required to be reported.

Just because you took their primary residence as additional collateral does NOT change the loan purpose from business purpose to consumer purpose.

Since it is a mixed purpose loan (why banks do things like this is beyond me) they need to figure it out the overriding purpose.

Thank you.