Good afternoon. I have a loan officer asking me the following question:
Borrower owns a parcel of raw land free and clear. The lender will provide a commercial loan against the value of the land only, providing funds outright. The borrower has stated he intends to use the funds to construct a single family rental home. The lender will have no direct mortgage on the rental home, although the loan officer states the mortgage covers anything on the land at any point in time. The loan is not being handled as a construction loan.
The loan officer is wondering if in this circumstance this loan is reportable as HMDA.
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