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#2286446 - 07/11/23 03:21 PM HELOC - Business Purpose
JoAnne S Offline
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Joined: Aug 2020
Posts: 16
We have an application for a personal Home Equity Line of credit. The purpose to purchase a fire system for business. Would this be HMDA reportable? And if so, would it be for purpose of "Other"?

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#2286451 - 07/11/23 04:08 PM Re: HELOC - Business Purpose JoAnne S
rlcarey Offline
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Joined: Jul 2001
Posts: 82,509
Galveston, TX
A business purpose revolving line of credit secured by a primary residence is not a "personal HELOC". It would not be reportable as business loans for other purposes are not reportable.
The opinions expressed here should not be construed to be those of my employer:

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#2286549 - 07/13/23 03:29 PM Re: HELOC - Business Purpose JoAnne S
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
A note: The loan will not be subject to any part of Regulation Z, including ยง 1026.40. And it won't be rescindable.

Do you really want to provide a revolving line of credit for what appears to be a one-time purchase for the borrower's business?
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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