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#2239097 - 07/06/20 03:12 PM Ag Property
LoveHMDA Offline
Gold Star
Joined: Nov 2005
Posts: 273
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?

Thank you!

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#2239157 - 07/07/20 12:32 PM Re: Ag Property LoveHMDA
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,422
Bloomington, IN
You have to determine the primary use of the property or the proceeds of the loan.

If the primary use of the property is agricultural the loan is exempt regardless of the loan's purpose, or if the primary use of the loan proceeds are for agricultural purposes the loan is exempt.
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#2239460 - 07/13/20 02:35 PM Re: Ag Property LoveHMDA
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,336
Cape Cod
I know very little about farming or ag business, but I am pretty sure the "loafing" sheds you describe are "foaling" sheds. The farmers I have met do very little "loafing."

Was the OP of this thread a victim of bad auto-correction?
Last edited by John Burnett; 07/13/20 02:40 PM.
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#2239463 - 07/13/20 03:28 PM Re: Ag Property LoveHMDA
DoS Offline
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DoS
Joined: Apr 2012
Posts: 264
one state over
John, a loafing shed is, generally, a three sided building to allow a place for livestock to get out of the rain, sun, etc.
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#2239464 - 07/13/20 03:38 PM Re: Ag Property LoveHMDA
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,336
Cape Cod
Well, then, I have certainly demonstrated my lack of farming/ag knowledge, now, haven't I? Thank you, DoS, for expanding my vocabulary and teaching this old dog a new trick.

My apologies to LoveHMDA for my suggestion that "loafing" wasn't the right word. I'm leaving my post up, though, to remind me of that old saying about the word "ASSUME."
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