We have a 9M closed end draw note for the purpose of expanding and renovating a home. Customer indicated that they will either sell the property when complete or run it as a guest house. If they sell it, it would be HMDA reportable now as no long term financing would happen. If it is run as a guest house, it would not be reportable, as it would be considered a transitory residence. So my dilemma is to report or not to report. Should I just go ahead and report it?

I'd go back to the LO.....they should be documenting the PRIMARY plans for repayment. Leaving it 50/50 isn't ideal.