We are doing a home improvement loan for a customer on their principal dwelling. The customer does not own the home, it is actually owned by his parents. I don't want to confuse "owner-occupied" for HMDA with "borrower-occupied", so in this instance would we report the Owner Occupancy code as a 2--Not owner-occupied as principal dwelling?!

Appreciate any feedback!

I would agree. Report as a 2.

HI, report on the property being improved. If the owner does not live in the property being improved, then it's a 2.

We are reporting on the property being improved and the borrower does live in the property, but he is not the owner of property (his parent's own the house). So we were assuming we would still code as a "2" since the property is not owner-occupied by our borrower.

Your borrower is not the owner. Take him out of the equation. Do either of the owners of the house (the parents) live there? If so, you'll code it as owner occupied. If not, it'll be NOO.

That makes sense! Thank you guys so much for clearing this up for us. I really appreciate it!!