Thread Options
#2262803 - 11/22/21 09:31 PM purchase or second home
JobSecurity Offline
Platinum Poster
Joined: Oct 2009
Posts: 579
While reviewing the LAR I came across a loan that the initial application was marked purchase primary. Further file review found a second home rider in the loan file. Mavent indicated the property was a primary. The final 1003 was marked second home. When I questioned what this loan was, I was told in processing, the type got changed from primary to second home in error. This was not caught until the investor was purchasing the loan. I was then told we were stuck to continue this file as a second. That the LAR should show this as a second home. The bank never proved the home was to be the primary, they did not sell their current primary and nothing additional was obtained since the processor error. I was told we could not document if the borrower was truly going to occupy the property.

I believe this should be on the LAR as a primary purchase and not as a second home. Anyone with more experience have a different thought on this loan? If so why?

Return to Top
HMDA

   
HMDA Academy
#2262813 - 11/23/21 07:38 AM Re: purchase or second home JobSecurity
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,293
Galveston, TX
You report the loan as applied for and how it should have closed. The bank making this sort of documentation error does not impact reporting.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2262816 - 11/23/21 01:26 PM Re: purchase or second home JobSecurity
JobSecurity Offline
Platinum Poster
Joined: Oct 2009
Posts: 579
Thank you. That was my thought but then I was getting some push back.

Return to Top

Moderator:  SMQ, CRCM