I think I know the answer to this, but not sure. 2nd mtg on parents primary residence to consolidate credit card debt belonging to son and girlfriend who live at another address. The loan is being made to the son but the house is owner occupied by the parents. So, am I right in thinking that this would be #1-owner occupied?

Unless you're paying off a mortgage, this wouldn't be HMDA reportable.

by gone it! your right! my bad!

Thanks, I don't know where my brain was on this one, probibly still over in the temp financing thread

The GIR page 12 states the "borrower's ccupancy" but Appendix A 203.6 asks for the owner occupied as principal dwelling. We have always used the owner of the property for reporting. Are we incorrect in our reporting?

The text is:

6. Owner Occupancy. Indicate whether the property to which the loan or loan application relates is to be owner-occupied as a principal residence by entering the applicable code from the following:

It asks if the property as it relates to the loan will be owner-occupied as a principal dwelling. As it relates to the loan it is not the borrower's (page 12) principal dwelling. Therefore it is non-owner occupied.

2 loans to the same customer; loan A is to purchase a dwelling and is secured by the dwelling and a guarantee by the customers parents, loan B is for the down payment on the same dwelling and is secured by a second mortgage on the parents home. Is loan B reportable, and if so, is it "home purchase"?

Thanks

Yes to both. Use the property information for the home used as collateral.

Thanks!

hmdagal, are you sure on loan B? It's secured by the parents' home and, unless it is a refi paying off another mortgage and getting additional $, I don't think it would be reportable. I don't see how it's a home purchase because the parents are not purchasing. They're just borrowing from the bank to lend to their kids.

'A home purchase loan includes a loan secured by one dwelling and used to purchase another dwelling.'

This is from page D-5 in GIR. Bliss didn't say that loan B was to the parents, just that it was secured by the parents home.

Loan B was made to the kids, secured by parents property, not to the parents. Does that make a difference RT?

Yep. Both loans to the kids just using different collateral and both to purchase the kids' home. hmdagal's right, Bliss.

ok, thanks

Since this thread started in 2006 they have changed the wording of the definition of Occupancy.

It now states ",indicate whether the property to which the loan or application relates will be the owner's principal dwelling. (rather than the borrower).

QUESETION:We have a business loan i/n/o ABC INC. Purpose is to repair kitchen at his business ABC Inc. The loan is a refinance of a debt that is secured by the business and the owner's home. The new loan will also be secured by the business and the home. The refinance definition is the only reason we are reporting this.

Since they changed the definition of occupancy I am trying to determine if occupancy status refers to the owner of the house securing the loan or does it refer to the business borrowing the money?

The owner of the house used as collateral.

THANKS!