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#2265444 - 01/28/22 07:51 PM Business purpose loans - HMDA reporting
Aruba123 Offline
Member
Joined: Jan 2012
Posts: 70
New York
Hello - I have been looking at HMDA for so long and need some clarity on the below scenarios.

1. A business purpose loan where the collateral is free and clear and the proceeds will be used to replenish borrower's funds would NOT be HMDA reportable as it is not a purchase, refinance or home improvement. Anyone disagree?

2. Would the same loan as above be reportable if the borrower was purchasing a property (purchase) or improving a property (Home Improvement and the property being purchased or improved is not a dwelling (they are commercial properties or the purchase of equipment)?

3. For a business purpose loan where the borrower's residence is being refinanced (meets the definition) and the proceeds are being used to purchase a commercial or investment property be reported as a refinance. Anyone disagree?

Any clarity would be appreciated.

Thank you

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#2265446 - 01/28/22 08:11 PM Re: Business purpose loans - HMDA reporting Aruba123
raitchjay Offline
Power Poster
Joined: Oct 2009
Posts: 8,763
OK
1. agree

2. not reportable (just for the record, you can't call something "home improvement" if the structure being improved isn't a home

3. Please define "investment property"....is that a dwelling or not? If a dwelling, then reportable as a purchase. If not a dwelling, then yes, reportable as a refinance.
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