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?

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.

Thank you. That was my thought but then I was getting some push back.