Thread Options
#2038582 - 09/15/15 06:08 PM Construction Loan for Business - HMDA
PJL Offline
Junior Member
Joined: Jul 2008
Posts: 28
We have a request to construct a building for the customer's business on the same property that contains their existing primary residence. Is this request "home improvement" for HMDA or simply a business purpose loan not reported on the HMDA-LAR?

Return to Top
HMDA

   
HMDA Academy
#2038599 - 09/15/15 06:55 PM Re: Construction Loan for Business - HMDA PJL
Ski Offline
Platinum Poster
Joined: May 2003
Posts: 639
South Louisiana
I doubt that constructing a building to be used for the customer's business would be considered "home improvement".

I would not consider this reportable UNLESS the bank is taking the primary residence as collateral and then ONLY when it is refinanced.

Return to Top
#2038604 - 09/15/15 07:08 PM Re: Construction Loan for Business - HMDA PJL
PJL Offline
Junior Member
Joined: Jul 2008
Posts: 28
We would take the primary residence as collateral, as it is on the same property at the newly constructed building.

Return to Top
#2038660 - 09/15/15 09:32 PM Re: Construction Loan for Business - HMDA PJL
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
The purpose of the funds is not to improve the dwelling or the real property (dwelling related).
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#2038673 - 09/15/15 10:35 PM Re: Construction Loan for Business - HMDA PJL
PJL Offline
Junior Member
Joined: Jul 2008
Posts: 28
Okay makes sense, thanks for your help!

Return to Top
#2040286 - 09/24/15 01:59 PM Re: Construction Loan for Business - HMDA PJL
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
I love BOL.....I was leaning the other direction!
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top

Moderator:  SMQ, CRCM