If the loan purpose is for a brother to buy out a sister on a rental property inherited by the brother andn sister and there had previously been no debt on the property, is this loan HMDA reportable as a purchase by the brother? or not reportable?

I would report it with a purpose of other. The brother already has an ownership interest in the property, so it isn't a purchase. It's not 'credit used to acquire, improve or maintain rental property', so it is reportable.

I would opine not reportable IF they property has already transferred to brother and sister. You can't buy what you already own. It would be an HE loan and if it's still to be rental property, it's commercial. IF, the new purpose is consumer, then it would be reportable as other.

Was it TRID or HMDA (or both?) that came with the 'clarification' that you "can't buy what you already own" (even though you may only partially own it)? On the surface, i'd want to look at this as a business purpose loan --buying a non-owner occupied rent home, but i can't remember if it's only HMDA or TRID too that has that clarification (and if it's TRID too....does that clarification travel over to 1026.4?

ditto hmdagal


(removed TRID reference)

That answer only holds water if it's purpose continues to be rental. Just because the dad rented it out does not mean the son intends to.