We have a HMDA reportable HE loan in TX that was denied due to the subject property not being the applicant's homestead. Would the denial reason be "4 - collateral" due to the type of collateral being a non-homestead1-4 family ("value or type of collateral"), or would this fall under the "9 - Other" category? Thanks!

I don't think homestead versus non-homestead is a type of collateral. I would go with other.

I am also curious - you do not make any equity loans on non-homestead property? It is funny that you will not make a loan that has actual recourse against the borrowers, but will make loans that do not, from a credit risk standpoint

Cash-out Refi HE loans for investment property are done through our Mortgage Department. This was done through our Consumer Underwriting Department...so it would be considered policy/product specific. I appreciate your incite and help with this.

If it is all the same bank - you have a real problem with that statement. You cannot deny an applicant because they gave the application to the wrong department.