Skip to content
BOL Conferences
Thread Options
#614543 - 09/18/06 02:48 PM HMDA
gunches Offline
100 Club
Joined: Dec 2005
Posts: 210
The CEO of the bank recently did a loan with a purpose of purchasing investment property. Property is 1-4 family residential. I told him it was HMDA reportable - He argues that according to the form I printed out from Bankers On Line it is not because it is business purpose. Can somebody clarify this for me?

Return to Top
Lending Compliance
#614544 - 09/18/06 02:57 PM Re: HMDA
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Any dwelling purchase loan that is secured by a dwelling is HMDA reportable regardless whether it's a business or consumer purpose loan.

BTW, for HMDA purposes a dwelling does not have to be a 1-4 family dwelling. It would also include multifamily dwellings such as apartment complexes.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#614545 - 09/18/06 03:00 PM Re: HMDA
gunches Offline
100 Club
Joined: Dec 2005
Posts: 210
That's what I argued with him, but his response is and will be "Why is it on the HMDA form to exclude then" The form says If you answer yes to any of these questions, application is not HMDA reportable. One of the questions is "Is this an application primarily for business/agricultural purposes (See HMDA Criteria for refinances)

Return to Top
#614546 - 09/18/06 03:02 PM Re: HMDA
CCLARK Offline
New Poster
Joined: Sep 2006
Posts: 3
We are purchasing 4 small branches of a large bank and they are currently reporting HMDA - we currently do NOT report on HMDA but will have to in January 2007. What should we do for these branches (all of their HMDA stuff was done at the corporate office level)for the last 4 months of the year?

Chris

Return to Top
#614547 - 09/18/06 03:11 PM Re: HMDA
ACBbank Offline
Power Poster
ACBbank
Joined: Jul 2006
Posts: 4,344
New York City
Dan is correct in his earlier statement. That being said, I would like to review this form you are referring too.
_________________________
"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

Return to Top
#614548 - 09/18/06 03:17 PM Re: HMDA
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I don't remember when that form was created, but I also use that form but I inserted next to business (other than covered loans). Also you have to remember that form was created by a person who generously offered to allow others to use it. However, it is not an official document sanctioned by the regulatory agencies and/or any official compliance endorsement that I'm aware of. You are the one responsible to insure it meets the regulatory requirements. You will have to show your CEO the definition of a home purchase loan at 203.2(h).
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#614549 - 09/18/06 03:21 PM Re: HMDA
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Start reviewing at page 5 of the GIR .
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#614550 - 09/18/06 10:09 PM Re: HMDA
CRAatBOK Offline

Power Poster
Joined: Mar 2004
Posts: 6,172
Further South than I wanna be.
Quote:

That's what I argued with him, but his response is and will be "Why is it on the HMDA form to exclude then" The form says If you answer yes to any of these questions, application is not HMDA reportable. One of the questions is "Is this an application primarily for business/agricultural purposes (See HMDA Criteria for refinances)




In your quote above, you have "Is this an application primarily for business/agricultural purposes (See HMDA Criteria for refinances)

You said the loan was to purchase an investment property so the part that refers to refinances would not apply to your loan. Not that it applys to this loan but my guess is the form might need to be updated for the reg changes.
_________________________
Life is not the way it's supposed to be. It's the way it is. The way you cope with it is what makes the difference.

Return to Top
#614551 - 09/19/06 09:30 PM Re: HMDA
megandmel Offline
100 Club
megandmel
Joined: Nov 2004
Posts: 141
OK
Ok, I understand the above ...I think... but my question is... what if a borrower buys a 1-4 family home to turn into their business location?

This borrower has purchased a home, secured by the home, in which to operate their Herb & Vitamin store.

Is this reportable under HMDA?
_________________________
Is that spelled HUM DUH?

Return to Top
#614552 - 09/19/06 09:44 PM Re: HMDA
hmdagal Offline
Power Poster
hmdagal
Joined: Dec 2002
Posts: 3,841
No. They aren't buying the property to be used as a dwelling, but to be used as a retail store. If they will keep part of the building as living space, you would need to look at the rules for mixed use property.

Return to Top
#614553 - 09/19/06 09:48 PM Re: HMDA
megandmel Offline
100 Club
megandmel
Joined: Nov 2004
Posts: 141
OK
Thanks....I was thinking that, but needed confirmation.

(No, none of it will be used for living space.)
_________________________
Is that spelled HUM DUH?

Return to Top

Moderator:  Andy_Z