A few different moving pieces have gotten me confused. We currently have a 1st lien on a farm+primary residence. Customer would like to take out a 2nd to finance the purchase of a mobile home to place on the land for one of their employees to live in. Can we use the Ag exemption for this and not report for HMDA? Does it matter whether or not we actually take the mobile home as collateral? And what about TRID?

Can we use the Ag exemption for this and not report for HMDA?

No. The Ag exemption is only for the purchase of property to be primarily used for agricultural purposes.

Does it matter whether or not we actually take the mobile home as collateral?

No. You have a dwelling secured loan for the purpose of purchasing a dwelling.

And what about TRID?

I would not consider this a consumer purpose loan since the dwelling is being purchased for business purposes. The dwelling will be used for an employee accommodation.

Some might opine this could be classified as transitory housing and be exempt from HMDA. I would only agree with that if the dwelling is being used for transient workers. If it's for a long time employee as an employee benefit then I would not classify it as transitory.

Phew. Thank you Dan for helping my brain on this Monday morning! We had also taken the stance of no TRID because of the business purpose lean but I got to second guessing myself. I am with you on the HMDA part as well, it is just a tough concept for most to grasp that even when we had an ag exemption for the initial purchase of the farm with a home, that this loan would not get the same treatment.