Thread Options
#445191 - 10/21/05 02:24 PM HMDA - Farmland and Home
swthomeala Offline
Junior Member
Joined: Oct 2005
Posts: 39
Georgia
I am reviewing a file that is renewing an original loan that was made for the purpose of buying a 54 acre farm (land only) and paying off the 1st mortgage of their home at a different location. The memo in file states that the renewal for this loan is for 12 months interest only with 1 balloon payment at the end. The lender states that the loan will be paid off with the proceeds of selling the primary dwelling, or if they do not take out a construction loan to build on farmage, then the balance will be amoritized. My question is it HMDA reportable?
_________________________
swthomeala

Return to Top
Lending Compliance
#445192 - 10/21/05 02:30 PM Re: HMDA - Farmland and Home
hmdagal Offline
Power Poster
hmdagal
Joined: Dec 2002
Posts: 3,816
It doesn't sound like it. First, you don't indicate that the new loan will be secured by a dwelling - it looks like it is only secured by the agricultural land. If it is indeed also secured by the dwelling, I would consider it to be temporary financing.

Return to Top
#445193 - 10/21/05 06:54 PM Re: HMDA - Farmland and Home
swthomeala Offline
Junior Member
Joined: Oct 2005
Posts: 39
Georgia
YEs, it is secured by a 1st mtg on both the land and the home. My opinion is that it is temporary financing also, but that is not the opinion of my collegue because it is a renewal of a previous loan and could be amortized.
_________________________
swthomeala

Return to Top
#445194 - 10/21/05 07:54 PM Re: HMDA - Farmland and Home
hmdagal Offline
Power Poster
hmdagal
Joined: Dec 2002
Posts: 3,816
The loan is not currently amortizing, and the primary source of repayment is the sale of the dwelling. That would be temporary financing.

Return to Top

Moderator:  Andy_Z