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#2107158 - 11/14/16 04:07 PM
Mixed Use
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Diamond Poster
Joined: Feb 2007
Posts: 2,084
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When HMDA rules reference mixed use does it apply to mixed use buildings or mixed used properties where there is a residential building and commercial building on the same tract?
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#2107159 - 11/14/16 04:12 PM
Re: Mixed Use
terpsfan
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Joined: Oct 2009
Posts: 9,232
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That's always been the $64,000 question......i think the consensus now is that it doesn't have to be within a structure, and i believe the revised HMDA rules better reflect that....but the current FAQs do a really bad job of stating that, if that was 'always' the intent.
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#2107166 - 11/14/16 04:28 PM
Re: Mixed Use
terpsfan
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Diamond Poster
Joined: Feb 2007
Posts: 2,084
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It appears to use similar wording in the new rules. I have always applied it to be within a structure and I am afraid to change and not stay consistent. I don't want to be doing it wrong though.
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#2107181 - 11/14/16 04:56 PM
Re: Mixed Use
terpsfan
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Joined: Oct 2009
Posts: 9,232
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Kathleen....to my memory, there is more than one example used...and every one of them references mixed-use only in one structure. Not disagreeing with your conclusion, but i do think they have done a really poor job of making it clear.
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#2107254 - 11/14/16 08:52 PM
Re: Mixed Use
terpsfan
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Diamond Poster
Joined: Feb 2007
Posts: 2,084
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I have reach out to the CFPB and will share any response I receive. When you say you agree do you mean with the take that mixed used is not restricted to the same structure?
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#2107469 - 11/15/16 09:41 PM
Re: Mixed Use
terpsfan
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10K Club
Joined: Aug 2002
Posts: 47,673
Bloomington, IN
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Response from HMDAHelp in 2009:
-----Original Message----- From: hmdahelp@frb.gov [mailto:hmdahelp@frb.gov] Sent: Wednesday, June 24, 2009 11:18 AM To: Dan Persfull Subject: RE: Mixed Use Property-a
The mixed-use property classification applies to a single building that houses both businesses and residential units AND to properties that contain both "stand alone" dwellings that are used as a dwelling only and other "stand alone" buildings used for business purposes only.
If you have a loan that meets the requirements for more than one loan purpose, the reporting hierarchy is home purchase, home improvement, refinance.
HMDAHELP.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#2107614 - 11/16/16 08:39 PM
Re: Mixed Use
terpsfan
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Diamond Poster
Joined: Feb 2007
Posts: 2,084
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Out of curiosity what changed your mind since March? Below is a response from a thread in March of this year. Has there been guidance issued since then or a regulatory training? " I agree with you raitchjay. My interpretation of the "mixed use" Commentary to §1003.2 has always been concerning a single building. The example given in the OP is about a property with several buildings - one of which is a dwelling. I don't think the "mixed-use" logic can be applied. _________________________ David Dickinson http://www.bankerscompliance.com "
Last edited by terpsfan; 11/16/16 08:40 PM.
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#2107622 - 11/16/16 08:51 PM
Re: Mixed Use
terpsfan
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Power Poster
Joined: Oct 2009
Posts: 9,232
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I agree with you raitchjay. My interpretation of the "mixed use" Commentary to §1003.2 has always been concerning a single building. The example given in the OP is about a property with several buildings - one of which is a dwelling. I don't think the "mixed-use" logic can be applied. Since it appeared by the order of the posts that you were addressing Dan, i just wanted to add clarity....that quote is David's not Dan's.
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#2107623 - 11/16/16 08:54 PM
Re: Mixed Use
terpsfan
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10K Club
Joined: Dec 2000
Posts: 21,293
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Out of curiosity what changed your mind since March? Below is a response from a thread in March of this year. Has there been guidance issued since then or a regulatory training? " I agree with you raitchjay. My interpretation of the "mixed use" Commentary to §1003.2 has always been concerning a single building. The example given in the OP is about a property with several buildings - one of which is a dwelling. I don't think the "mixed-use" logic can be applied. _________________________ David Dickinson http://www.bankerscompliance.com " Not David, but he has spoken with the CFPB on this topic (we discussed). He can confirm but is likely running around all day. I just happened to spin by here in my travels.
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#2107627 - 11/16/16 08:58 PM
Re: Mixed Use
terpsfan
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Power Poster
Joined: Oct 2009
Posts: 9,232
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My last post on this topic (hopefully for a while).....but IMO, we shouldn't have to shoot off emails to HMDA Help (in the past) or to the CFPB (today).......it ought to be clear from the text of the regulation and its commentary what is meant. Up to this point, it has not been clear. I know that you can say that "property" can mean all the structures on a piece of land...that makes sense. But since they were never going to use the terminology "mixed-use DWELLING" (after all, if the test determines that the primary purpose is commercial, it isn't a "dwelling" at all)...so "mixed-use PROPERTY" can seem like a generic term used to replace "structure". I don't bring it up to start that argument all over again.....just that again, these things ought to be made very clear in the text of the regulation and the commentary.
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#2110197 - 12/08/16 09:10 PM
Re: Mixed Use
David Dickinson
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Joined: Nov 2004
Posts: 138
Somewhere on a beach
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Does it matter if the buildings are on separate but contiguous parcels, each with their own address? We have a loan to purchase 5 buildings that sit on 7 contiguous parcels, 4 of which are commercial buildings and one is a residence. They each have their own address, with their addresses being on 3 different streets that connect to each other. Obviously if we treat this as a mixed use property it would not be reportable due to the majority of the buildings being commercial but do we have to report it because the one dwelling sits on it's own parcel? I feel that this is still a mixed use and we should not report.
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