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#2134408 - 06/14/17 09:36 PM HMDA HOME IMPROVEMENT?
Anonymous
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If I have a loan that the proceeds are going to build a work shop (to manufacture sheds) on real property where a dwelling is located, is there a test to see if its HMDA reportable?

I've read that if the shop is income producing then it would not be.
needing guidance.

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#2134446 - 06/15/17 01:17 PM Re: HMDA HOME IMPROVEMENT? Anonymous
Anonymous
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anyone?

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#2134447 - 06/15/17 01:18 PM Re: HMDA HOME IMPROVEMENT? Anonymous
JSD Offline
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JSD
Joined: Oct 2000
Posts: 512
USA
We consider this home improvement for a business purpose not consumer purpose and do not report on HMDA.

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#2134450 - 06/15/17 01:38 PM Re: HMDA HOME IMPROVEMENT? Anonymous
Anonymous
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ok I'm confused because there can be business home improvement, rental property being improved for example.

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#2134457 - 06/15/17 01:51 PM Re: HMDA HOME IMPROVEMENT? Anonymous
JSD Offline
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JSD
Joined: Oct 2000
Posts: 512
USA
All improvements are not a reportable home improvement loan for HMDA. They need to improve the residential portion of property. In your example the improvements are to build a work shop that is income producing - it is not HI for HMDA.

There are several threads on BOL about this topic as it has been discussed previously. (Not technical enough to do the links!)

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#2134492 - 06/15/17 03:38 PM Re: HMDA HOME IMPROVEMENT? Anonymous
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
Rental property would be residential real estate and thus improvements are a home improvement.

Building a business structure on the same land is not improving the residential portion of your property under current rules.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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