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?