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#2057919 - 01/11/16 09:44 PM Reporting for a rental property
Everest Offline
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Joined: Jan 2012
Posts: 281
I am wondering if I am thinking correctly on how to report the following information on the LAR. The loan is to purchase a 1-4 single family home for rental purposes. However, the loan is secured by the borrowers primary residence. Is this the accurate way to report the following:

Property Type: 1-4 Single Family (rental property)
Purpose: Purchase
Occupancy: Non OO (based on rental property and not the owners actual home that is securing the loan)
MSA/State/County/Census Tract info: code based on the rental property location and not the property securing the loan

Thanks.

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#2057927 - 01/11/16 09:52 PM Re: Reporting for a rental property Everest
Melissa S Offline
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Melissa S
Joined: Jan 2015
Posts: 305
Maine
Appendix D of the GIR (page D-9) states "For a home purchase loan, an institution reports the property taken as security. If an institution takes more than one property as security, the institutions reports the location of the property being purchased if there is just one."
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#2057931 - 01/11/16 10:07 PM Re: Reporting for a rental property Everest
Skittles Offline
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Skittles
Joined: Sep 2002
Posts: 13,963
TN
I disagree. If the loan is secured by the primary residence it is owner occupied. It would be a purchase; however the property taken as collateral is owner occupied and you would geocode that property.
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#2057955 - 01/12/16 06:09 AM Re: Reporting for a rental property Everest
SMQ, CRCM Offline
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Joined: Apr 2001
Posts: 4,828
Between the lines
FWIW, ditto what Skittles said.

And what this section should say----
Appendix D of the GIR (page D-9) states "For a home purchase loan, an institution reports the property taken as security. If an institution takes more than one property (and one of the properties is the one being purchased) as security, the institutions reports the location of the property being purchased if there is just one."
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#2058734 - 01/14/16 07:40 PM Re: Reporting for a rental property Everest
Colorado Girl Offline
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Joined: Mar 2013
Posts: 67
As stated above, the Occupancy should be reported for the property to which the loan or application relates (geocoded), the property type is also indicated for the property to which the loan or application relates. So in this case, the property type will be indicated for the borrowers primary residence, not the rental property.

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