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#278832 - 11/23/04 04:04 PM
HMDA - Which property do I report?
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Diamond Poster
Joined: Mar 2003
Posts: 1,035
OK
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We have a home purchase loan. The loan was to purchase a second home in Texas but it is secured with their home in Oklahoma. Do I report the home that the loan was for or the one we took as collateral?
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#278835 - 12/08/04 03:25 PM
Re: HMDA - Which property do I report?
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Anonymous
Unregistered
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What would you report for property type and occupancy? Would you report based on the collateral ... or on the property being purchased? i.e., would these two fields be based on the property used for the property location codes?
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#278836 - 12/08/04 03:48 PM
Re: HMDA - Which property do I report?
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10K Club
Joined: Aug 2002
Posts: 47,886
Bloomington, IN
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You report type and occupancy based on the property being reported.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.
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#278837 - 02/07/06 04:14 PM
Re: HMDA - Which property do I report?
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100 Club
Joined: Nov 2004
Posts: 138
Somewhere on a beach
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Quote:
Multiple properties: [Commentary to §203.4(a)(9) #1 & 2]
Home purchase or refinance of home purchase. For a home-purchase loan, an institution reports the property taken as security. If an institution takes more than one property as security, the institution reports the location of the property being purchased if there is just one.
In the section of the Commentary above, it uses the term "property taken as security." The definition of a home purchase loan in the commentary says "a home purchase loan includes a loan secured by one dwelling and used to purchase another dwelling." It doesn't refer to a "property".
The loan funds were used to purchase land without a dwelling, and also the mobile home that sits on the land but was not secured by the mobile home. The loan was secured by the land purchased and another 1-to-4 family dwelling, but not the mobile home. The loan would be HMDA reportable as it was used to purchase a dwelling (mobile home) and is secured by another dwelling, but since it is secured by two "properties" (the land that was purchased and the land with the dwelling), which "property" should be reported? The purchase definition uses secured by a "dwelling", which would be the 1-to-4 family dwelling, but the property location instructions says to use the "property" taken as collateral, which would be the land purchased. Which property should we report, the land that has the "dwelling" from the purchase definition, or the 1-to-4 family dwelling "property" from the location information?
Is there even a difference between "dwelling" and "property" in this situation?
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#278838 - 02/07/06 05:33 PM
Re: HMDA - Which property do I report?
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10K Club
Joined: Jul 2003
Posts: 17,421
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HMDA's purpose is to "...collect and publicly disclose information about applications for, originations of, and purchases of home purchase loans, home improvement loans and refinancings." (GIR Introduction p1) So, if this were a land only purchase with no home security, it would not be HMDA reportable.
You're to report "what the loan or application was made on". (GIR p 11) As I understand it, mobile homes are not HMDA reportable unless the mobile home is fixed to the ground. If that's the case, IMO, you can use it as the property for your LAR.
If it's truly a 'mobile' home, then I would use the dwelling you took as collateral as the property on this loan and report occupancy, etc., based on it.
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#278840 - 02/07/06 06:10 PM
Re: HMDA - Which property do I report?
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10K Club
Joined: Jul 2003
Posts: 17,421
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JSD, got a reference for that thought? (No disrespect meant) I based my opinion on the fact that FNMA underwriting, which we use here, will not approve a mobile home unless it meets certain criteria, the first of which is affixed to the property. Somewhere buried (pun intended  )in the old threads is a discussion on 'dirt' and HMDA. You might find something there if you searched.
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#278842 - 02/07/06 07:16 PM
Re: HMDA - Which property do I report?
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Power Poster
Joined: Jun 2001
Posts: 8,272
Where the heart is
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Quote:
JSD, got a reference for that thought? (No disrespect meant)
I based my opinion on the fact that FNMA underwriting, which we use here, will not approve a mobile home unless it meets certain criteria, the first of which is affixed to the property. Somewhere buried (pun intended )in the old threads is a discussion on 'dirt' and HMDA. You might find something there if you searched.
I think you may be confusing RESPA with HMDA. If you are financing a "mobile home only" loan, with no dirt, then RESPA would not apply, but HMDA would if the purpose is to purchase, refinance, improve, or maintain a dwelling.
Look at the definition of "Dwelling" in HMDA:
(d) Dwelling means a residential structure (whether or not attached to real property) located in a state of the United States of America, the District of Columbia, or the Commonwealth of Puerto Rico. The term includes an Individual condominium unit, cooperative unit, or mobile or manufactured home.
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CRCM,CAMS
Regulations are a poor substitute for ethics.
Just sayin'
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