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#2290583 - 11/09/23 05:46 PM Cashout on RV Trailer Park-Business Loan
Love Cruising Offline
100 Club
Joined: Dec 2019
Posts: 207
We have a loan secured by an RV trailer Park with 25 pads, 1-fourplex and one single family. The customer is recapture funds used when the trailer park was purchased. Portion of the money will go towards some improvement. Will this be HMDA reportable?and if so how many units do we report, would each pad counts towards 1 or do we just report the 2 units (fourplex and single family).
Thank you.

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#2290591 - 11/09/23 06:28 PM Re: Cashout on RV Trailer Park-Business Loan Love Cruising
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,479
Bloomington, IN
Based on your description I would opine the RV Trailer Park does not meet the definition of a Manufactured Home Facility and those pads would not be counted.

(f) Dwelling means a residential structure, whether or not attached to real property. The term includes but is not limited to a detached home, an individual condominium or cooperative unit, a manufactured home or other factory-built home, or a multifamily residential structure or community.

2. Multifamily residential structures and communities. A dwelling also includes a multifamily residential structure or community such as an apartment, condominium, cooperative building or housing complex, or a manufactured home community. A loan related to a manufactured home community is secured by a dwelling for purposes of § 1003.2(f) even if it is not secured by any individual manufactured homes, but only by the land that constitutes the manufactured home community including sites for manufactured homes. However, a loan related to a multifamily residential structure or community that is not a manufactured home community is not secured by a dwelling for purposes of § 1003.2(f) if it is not secured by any individual dwelling units and is, for example, instead secured only by property that only includes common areas, or is secured only by an assignment of rents or dues.

3. Exclusions. Recreational vehicles, including boats, campers, travel trailers, and park model recreational vehicles, are not considered dwellings for purposes of § 1003.2(f), regardless of whether they are used as residences. Houseboats, floating homes, and mobile homes constructed before June 15, 1976, are also excluded, regardless of whether they are used as residences. Also excluded are transitory residences such as hotels, hospitals, college dormitories, and recreational vehicle parks, and structures originally designed as dwellings but used exclusively for commercial purposes, such as homes converted to daycare facilities or professional offices.

The customer is recapture funds used when the trailer park was purchased. Portion of the money will go towards some improvement.

If any of the improvement are to the fourplex or SFR then it would be reportable as home improvement.

4. Mixed-use property. A closed-end mortgage loan or an open-end line of credit to improve a multifamily dwelling used for residential and commercial purposes (for example, a building containing apartment units and retail space), or the real property on which such a dwelling is located, is a home improvement loan if the loan's proceeds are used either to improve the entire property (for example, to replace the heating system), or if the proceeds are used primarily to improve the residential portion of the property. An institution may use any reasonable standard to determine the primary use of the loan proceeds. An institution may select the standard to apply on a case-by-case basis. See comment 3(c)(10)-3.ii for guidance on loans to improve primarily the commercial portion of a dwelling other than a multifamily dwelling.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2290601 - 11/09/23 09:09 PM Re: Cashout on RV Trailer Park-Business Loan Love Cruising
Love Cruising Offline
100 Club
Joined: Dec 2019
Posts: 207
Thanks.

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