Perhaps an old question that has come up again. When reporting number of units, is this only applicable to multi-family properties. Or would this include a SFR with a rental unit either attached or unattached to the SFR? Our appraisals on these types of properties as accessory units.

the number of units to be reported is not restricted to only the address being reported, or multi-family properties only. The number of units to be reported are the total number of residential units in all properties collateralizing the loan. So if you have 5 properties in different locations, for example, with 3 properties at 3 units each, and 2 properties at 6 units each, your total number of units is 21.

Melissa, I had someone telling me that units only apply to multifamily rental properties. Not if an applicant has a home with a mother-in-law unit in the back that is occupied, with a bath, kitchen, and bedroom. I disagreed. Guess it all comes down to consistency in our reporting. Thank you for your input.

I agree with Melissa. The rule for the number of units to be reported doesn't have carve outs for certain types of structures.

(31) The number of individual dwelling units related to the property securing the covered loan or, in the case of an application, proposed to secure the covered loan.

Guess it all comes down to consistency in our reporting

Consistently reporting the wrong number of units does not negate the fact you are incorrectly reporting the number of units.

(31) The number of individual dwelling units related to the property securing the covered loan or, in the case of an application, proposed to secure the covered loan.

Agree that units encompasses whatever units exist, but accessory and mother-in-law situations can be a bit difficult to decipher as far as whether a separate unit or "dwelling" actually exists.

This is what we are running into. If the in-law or 'guest quarters' aren't actually being rented out, is it then transitory so it doesn't count for HMDA? Or do we still include it because it could be rented out as a separate dwelling?

I have always included it but am getting pushback . . . .

And to make it more interesting, I have an application that clearly states SFR w/ garage and apartment, but the tax card from town lists 1 dwelling unit , 0 accessory units, and the owners refer to it as guest space.

1 unit or 2 for HMDA?

I would go with 1 unit in that latter scenario.

If such a space is not being rented out, then it comes down to the official records, imho. Is it considered a 2 unit with the county, etc. Because, otherwise, it's just an extra room and bathroom for the house as I see it.

If the garage is an attached garage then I could go along with it being a single dwelling, however if the "living" quarters are detached then I don't see how you could not report it as an individual dwelling unit. No where in the regulation I'm aware of does it stipulate the unit has to be rented or lived in.

I agree the Regulation does not stipulate that, but it is a practical reason for a different. If it is not an official unit with the Zoning authority and the family just uses it as an extension of the "main" house, what would you call it? A vacation home? The renting it out makes it either a transitory structure and not a HMDA dwelling (AirBnB) or an investment property.

You don't have to identify it as such unless it is the only dwelling unit securing the loan and if that's the case then you have determined it qualifies as a dwelling. If it is a living quarter above a detached garage then I don't see how you can say it's not an individual dwelling unit.

It kind of relates to the recent conversation about what is a dwelling and some of the pictures David Dickinson posted that according the the CFPB those "structures" were dwellings for the purpose of the regulation.

Based on those opinions I don't see how you can exempt the living quarter simply because it's not rented or it's not listed on the tax assessment.

Yeah, I get your point, but I would just see it as an extra part of the house if not being used otherwise. It's basically an extra bathroom and bedroom, lol. Just because they are next to each other you have a dwelling? You could "section off" other parts of the home and make a 4 unit spot if that is the case.

Something to think about (and leaning towards the Dan's side) - let's say that this detached garage with living quarters (bathroom living, room, and kitchen), and the house were on 2 separate parcels adjacent to each other.

The borrower decides to use the parcel with the garage as the collateral and needs funds to repair the roof of the garage - assuming the garage was for personal use, would it be reportable? Could you argue to an examiner that this would not be a "dwelling" by HMDA definition.

I would suspect if it was on a separate parcel it would likely be on file with the county/zoning authority as an official unit.

CloudShape - is the 2nd unit attached or detached in this case? I was just wondering if there are other twists such as the owners saying it doesn't actually have water or anything. I don't know what "1 dwelling unit , 0 accessory units" means as that indicates one to me, but attached/detached seems an easy test for consistent treatment.