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#2040574 - 09/25/15 03:20 PM upgrading sewer system on vacant land
Ski Offline
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Joined: May 2003
Posts: 639
South Louisiana
Borrower has a commercial working capital loan secured by land that contains a mobile home park. Bank only has a mortgage on the land; none of the dwellings present (all are owned by the renters).

He needs to upgrade the sewer system so that he can increase the number of rental slots.

Our loan will not be secured by any dwellings (only the land) and will not be classified as home improvement.

HMDA reportable?

Thanks in advance.

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#2040576 - 09/25/15 03:27 PM Re: upgrading sewer system on vacant land Ski
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
I would say no. The loan is not secured by a residence and is not improving a residence.
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#2040628 - 09/25/15 05:04 PM Re: upgrading sewer system on vacant land Ski
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I agree.
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David Dickinson
http://www.bankerscompliance.com

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#2042362 - 10/03/15 06:02 PM Re: upgrading sewer system on vacant land Ski
WDMT Offline
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WDMT
Joined: May 2015
Posts: 33
Why would this not be Home Improvement? Improving a dwelling or the real property on which a dwelling is located? Thanks in advance

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#2042370 - 10/04/15 12:37 PM Re: upgrading sewer system on vacant land WDMT
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
Originally Posted By WDMT
Why would this not be Home Improvement? Improving a dwelling or the real property on which a dwelling is located? Thanks in advance


"Our loan will not be secured by any dwellings (only the land) and will not be classified as home improvement."
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#2042567 - 10/05/15 06:41 PM Re: upgrading sewer system on vacant land Ski
WDMT Offline
Junior Member
WDMT
Joined: May 2015
Posts: 33
Thank you Kathleen. I was stuck on the fact that HI loans can be unsecured and for improving the real property that any dwelling sits on. I wasn't thinking that an institution doesn't have to report them if they do not classify them as HI loans. I'm a newbie so thank you!

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