I have a question regarding occupancy codes for a commercial loan. We have a refinanced loan to a corporation and the collateral is a 2nd mortgage on the owner's residence. Do we answer the occupancy code as "owner occupied" or "not owner occupied" or N/A?

Why is thus HMDA? Did you have the residence as collateral on the original note? If so, then then I believe it would be owner occupied as it the the property to which the loan relates.

Yes, we did have the residence as collateral on the original note.

Sorry, I disagree. The residence is not the borrower's (Corporation's) primary residence therefore it would be non-owner occupied. Look to page 12 of the GIR.

Thank you Dan. I was leaning that way, but wanted reinforcement.

Also remember, if your borrower is a non-natural person, the non-natural person cannot have a primary residence. Only natural persons can "reside."

So if your borrower is a non-natural person (and no natural persons are co-borrowers!), then all of your race, sex, ethnicity, and income codes are basically "N/A", and your occupancy is "Non Owner."

Just watch out for the natural persons co-borrowing on the Note. That can mess you up big time if you're not careful!