Skip to content
BOL Conferences Top Gun 23
Thread Options
#314767 - 02/10/05 04:38 PM HMDA - Owner Occupancy Status
lana Offline
New Poster
Joined: Nov 2004
Posts: 16
TN
Need some help. I have a HMDA reportable loan, purpose is to purchase a rental house but the collateral, securing the loan is the customer's primary residence. If I understand the regulation, I will report the Property Location for the primary residence, so wouldn't the owner occupancy status need to be a 1 for owner occupied? My loan processor thinks it should be a 2 since the purpose is to purchase a rental house.
_________________________
Our character is what we do when we think no one is looking.

Return to Top
Lending Compliance
#314768 - 02/10/05 04:46 PM Re: HMDA - Owner Occupancy Status
TB 12 Offline
Power Poster
TB 12
Joined: Feb 2005
Posts: 6,559
Foxboro
I am a little confused about the transaciton-is your customer taking cash out of their primary residence to purchase the investment property? If that is the case, it should be reported as owner occupied, since your transaction is based on that property-The purpose of the cash out is irrelevant.
_________________________
Best QB Ever. Worst Defense Ever.

Return to Top
#314769 - 02/10/05 04:47 PM Re: HMDA - Owner Occupancy Status
Anonymous
Unregistered

The way I understand it, you would code it a "1" owner occupied because it is secured by the primary residence.

Return to Top
#314770 - 02/10/05 05:10 PM Re: HMDA - Owner Occupancy Status
SMQ, CRCM Offline
Power Poster
SMQ, CRCM
Joined: Apr 2001
Posts: 4,828
Between the lines
Page D-10, Occupancy, among other things, it says "institution reports the owner-occupancy status of the property for which property location is being reported. see 4(a)(9)"

Page D-12 4(a)(9) 2. Property Location--"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...."

It appears that you are right, security is customer's residence, report occupancy as 1. If you take both, use purchased property and report as 2.
_________________________
NOLA is my Beach!

Return to Top
#314771 - 02/10/05 05:14 PM Re: HMDA - Owner Occupancy Status
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
SoccerMom's analysis is correct.

You always report the appropriate information for the dwelling/property that is being reported on the LAR.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#314772 - 02/10/05 09:05 PM Re: HMDA - Owner Occupancy Status
SMQ, CRCM Offline
Power Poster
SMQ, CRCM
Joined: Apr 2001
Posts: 4,828
Between the lines
Thanks Dan, boy did I need to feel like I did one thing right today!!! Working on HMDA and CRA, exam starts Monday, board meeting, annual meeting and my PC is not cooperating............On top of all that, I thought today was Friday, jeeza louisa! Maybe I should just open the bar.
_________________________
NOLA is my Beach!

Return to Top
#314773 - 02/11/05 03:04 PM Re: HMDA - Owner Occupancy Status
lana Offline
New Poster
Joined: Nov 2004
Posts: 16
TN
Thanks to all of you. You've been a big help! Have a great weekend.
_________________________
Our character is what we do when we think no one is looking.

Return to Top
#314774 - 10/25/05 04:41 PM Re: HMDA - Owner Occupancy Status
#12 Online
Diamond Poster
Joined: Jun 2005
Posts: 1,338
Sorry to bring this thread back up, but I just want to make sure I am doing this correctly. My question was the exact same as the original one, and I understand the occupancy code should relate to the property being reported, not the property being purchased. So, if a rental house is being purchased, but the loan is secured by the primary residence, the occupancy code is owner occupied. My question is, is the purpose code still a 1 (purchase)? Thanks for your help!
_________________________
CRCM

Return to Top
#314775 - 10/25/05 04:49 PM Re: HMDA - Owner Occupancy Status
Cowboys Fan Offline
Power Poster
Joined: Dec 2002
Posts: 4,600
SC
Purpose would be purchase.
_________________________

Return to Top
#314776 - 10/25/05 04:49 PM Re: HMDA - Owner Occupancy Status
#12 Online
Diamond Poster
Joined: Jun 2005
Posts: 1,338
Thanks...I don't know why I doubt myself!
_________________________
CRCM

Return to Top

Moderator:  Andy_Z