I have several scenarios regarding Ag properties and HMDA reporting. I was wondering if I could get other opinions on whether or not to report or exempt these loans for the Ag purpose.
#1 – Borrowers are doing a 2nd lien home equity loan for home improvements on their 40 acre Ag property. The property has a 1 story home, horse barn, loafing shed, and a wood utility building. The home improvements are to the home to setup a home recording studio and to put up a fabric cover over the horse arena. One of the applicants does voice overs. Both borrowers have several businesses that they run at this property…two being for the voice over business, two being their ranch business and one being their horse business. They board, train, and do riding lessons with horses. Would you report this loan on the LAR or Exempt it?
#2 – Borrower is doing a refinance on his primary Ag property in Texas. Borrower lives in Canada and also has this 11.36 acre ranch property here in Texas. The property has a 1 story home with a pool, guest home, 3 stables, a barn, an arena, and a pipe fence pasture. The borrower stays at this property when he is in town. His son takes care of and resides at this property. The son does the horse boarding and horse training. Would you report this loan on the LAR or Exempt it?
#3 – Borrowers are buying their homestead Ag property that contains 62.375 acres. The property has a 1 story home, guest quarters with loafing shed and stalls, large barn, workshop, storage building, 3 loafing sheds, pond, and a well house. They have 15 head of cattle on this property. Would you report this loan on the LAR or Exempt it?