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#2172617 - 04/09/18 08:11 PM Mobile home on business property
Winning Offline
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Joined: Sep 2015
Posts: 88
Just to double check....We have a loan to build storage units (business purpose) where the collateral consists of several things including a mobile home. We are refinancing that loan with the SAME collateral. Is this HMDA under the new rules?

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#2172619 - 04/09/18 08:13 PM Re: Mobile home on business property Winning
RR Joker Offline
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The Swamp
Sounds like it will be primarily non-dwelling purpose to me.
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#2172622 - 04/09/18 08:16 PM Re: Mobile home on business property Winning
raitchjay Online
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Joined: Oct 2009
Posts: 8,759
OK
Sounds like a reportable refi to me.
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#2172625 - 04/09/18 08:17 PM Re: Mobile home on business property Winning
raitchjay Online
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Posts: 8,759
OK
Unless the mobile home is on a tract of land with other commercial property where the mixed-use test reveals the property to be primarily commercial.....but none of that is represented in the original post.
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#2172627 - 04/09/18 08:18 PM Re: Mobile home on business property Winning
RR Joker Offline
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The Swamp
True. And I started out with refi, and talked myself right out of it crazy
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My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#2172666 - 04/10/18 12:32 PM Re: Mobile home on business property Winning
David Dickinson Offline
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Central City, NE
Winning: What raitchjay and Joker are referring to is the "Mixed Use Property" issue found in the definition of "dwelling".

If a dwelling is located on property used for both residential and commercial purposes the lender must decide the property’s primary purpose. The Commentary to §1003.2(f) #4 states "An institution may use any reasonable standard to determine the primary use of the property, such as by square footage or by the income generated (or income per square foot, borrower’s intent, etc.). An institution may select the standard to apply on a case-by-case basis.

If the MH is located on the same property as the commercial use property, then you have a mixed-use property. If that's true, it sounds like this would not be a dwelling for HMDA. If it's not located on the same property, then you have a dwelling secured loan replacing a dwelling secured loan - a "refinancing" for HMDA.
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#2172669 - 04/10/18 12:33 PM Re: Mobile home on business property Winning
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I forgot to add a sentence to the last paragraph. Let me try again:
If the MH is located on the same property as the commercial use property, then you have a mixed-use property. If that's true, it sounds like this would not be a dwelling for HMDA. Therefore, this loan would not be subject to HMDA since it is not secured by a dwelling.
_________________________
David Dickinson
http://www.bankerscompliance.com

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