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#910435 - 02/26/08 04:44 PM B & B Refinance - HMDA Reportable?
mbzgrl, CRCM Offline
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We are refinancing a Bed & Breakfast, which is also the borrower's dwelling. The loan will be secured by the B & B. Is this HMDA-reportable?

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#910461 - 02/26/08 05:04 PM Re: B & B Refinance - HMDA Reportable? mbzgrl, CRCM
hmdagal Offline
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Refer to the 'Mixed-use property' discussion starting on the bottom of pg D-5 of GIR.

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#910824 - 02/26/08 09:47 PM Re: B & B Refinance - HMDA Reportable? hmdagal
mbzgrl, CRCM Offline
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That applies to purchases. This is a refinance.

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#910831 - 02/26/08 09:54 PM Re: B & B Refinance - HMDA Reportable? mbzgrl, CRCM
Dan Persfull Offline
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If the B&B does not qualify as a dwelling by the mixed-use test then you aren't refinancing a dwelling are you?
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#910836 - 02/26/08 10:01 PM Re: B & B Refinance - HMDA Reportable? Dan Persfull
mbzgrl, CRCM Offline
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Now I'm really confused. We report ag loans as HMDA-reportable refinances if there is a dwelling on the farm. Thinking along those lines, I thought since the B & B was someone's dwelling, then the refinance would be HMDA-reportable.

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#910942 - 02/27/08 01:47 AM Re: B & B Refinance - HMDA Reportable? mbzgrl, CRCM
Truffle Royale Offline

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The primary purpose of the property doesn't change whether it's a purchase or refi so whatever standard you set for determining the primary use of the property applies.

Example, if the square footage of the portion used as a B&B is greater than the living quarters and that's your criteria for determing purpose, then this is not HMDA reportable.

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#911145 - 02/27/08 03:26 PM Re: B & B Refinance - HMDA Reportable? Truffle Royale
hmdagal Offline
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The reg does give us a specific exclusion for reporting the purchase of ag property, but that doesn't apply to refi's or to other types of property.

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#911236 - 02/27/08 04:09 PM Re: B & B Refinance - HMDA Reportable? hmdagal
mbzgrl, CRCM Offline
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OK, so we are correct in reporting the refinances of ag properties that contain a residential dwelling, but the B & B may go either way. Right?

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#911251 - 02/27/08 04:18 PM Re: B & B Refinance - HMDA Reportable? mbzgrl, CRCM
hmdagal Offline
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Right - it depends on whether you determine the B&B is primarily residential or commercial property.

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#911336 - 02/27/08 05:10 PM Re: B & B Refinance - HMDA Reportable? hmdagal
Dan Persfull Offline
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Found it, finally. Here's a post I made several months ago that may be of help mbzgrl:


There have been several questions in the past concerning whether to report mixed-use property when it comes to refinancings. Below is an answer that I recently posted in the Guru section.

I hope it will help you in these situations.




The regulation does not give specific guidance on refinancings when it comes to mixed-use properties, so this is how I approach it.

For mixed-use property the regulation gives the financial institution the means to determine the primary use of the property in the case of a purchase or for home improvement purposes by using either the square footage or the income produced on a case by case basis. For home improvement purposes you'll find more guidance in the GIR on page D-5.

The definition of a refinancing is any dwelling secured loan that is replaced and satisfied by another dwelling secured loan to the same borrower.

Therefore when refinancing a mixed-use property you need to determine if the original loan was considered secured by a dwelling or by business purpose property using the formulas allowed by the regulation at the time of the original loan. In other words how was the property classified for the original loan?

If the original loan was not secured by a dwelling per that formula then you are not replacing and satisfying a dwelling secured loan. Therefore your new loan would not meet the definition of a refinancing.
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