Customer doing a 2nd mortgage on one of his rental properties. Purpose of funds is to buy a Pizza Shop.
HMDA reportable as a Purchase or Other - Buy Pizza Shop?

It sounds like a commercial loan, so the other category doesn't apply. There is no purchase because the funds won't be used to purchase a dwelling, and it doesn't sounds like a refi or home improvement would apply based on the limited info, so I would say not HMDA reportable.

That where I was leaning but I keep getting hung up on the collateral being a dwelling. Need to focus on purpose of funds. Thanks!

Business purpose home equity loans are not reportable, unless the proceeds are used to purchase, refinance or improve a dwelling. As TMatt stated, this loan is not subject to HMDA.

Purpose and collateral both come into play in HMDA. An easy way to remember how to report these situations is that if the Purpose field would result in using "Other" and funds are not used for a consumer reason, then you do not report it.