We are going to start offering financing for Co-Ops. We have most of the regs figured out, but are having trouble with HMDA. These loans will be secured by a "stock" of the complex. Not a typical margin stock, but basically a piece of paper that gives them the right to live there. So if the buyer defaults, we would be made whole by re-selling that "stock". Since it is a primary residence, but there is no mortgage to be recorded, is it HMDA reportable?

Thank you in advance!

Do you have a loan secured by a dwelling? If not, I don't believe HMDA applies.

That's where it is getting confusing. It is secured by a dwelling, but we are taking (to quote reg z) "an equivalent consensual security interest is created or retained against the consumer's dwelling to finance the acquisition of such dwelling." Obviously that is a different reg, but I would think that the definition would cross reg lines.

From page 28 of the GIR:

Dwelling. Dwelling means any residential structure, whether or not attached to real property. It includes vacation or second homes and rental properties; multifamily as well as one-to-four-family structures; individual condominium and cooperative units; and manufactured and mobile homes. It excludes recreational vehicles such as boats and campers, and transitory residences such as hotels, hospitals, and college dormitories.

There would be no mortgage recorded against a MH only loan either. The regulation says if the loan is secured by a dwelling. Your loan is secured by a dwelling, therefore if it's for a home purchase, home improvement or refinancing it's reportable.

Thank you so much for your help!!