I have a customer who owns a home and is taking out a loan to purchase another home which will be torn down, a new home built on the site and then his original home will be sold and he will move into the new home that was built. When reporting to HMDA, is he buying a 1-Owner Occ Principal Res or a 2-Non Owner Occ Residence. He will be making it his owner occ residence -- just not at this time. What do you think?

You report the occupancy status of the home securing the loan. Therefore whatever the occupancy status the home he owns and taking out the equity in is the status you report.

the home he occupies currently is not involved in the loan. He is purchasing a dwelling to be torn down and the new home built on the site will be his new owner occupied home once the new home is built and his current home is sold.

I'm curious if this is even reportable? Is it a temporary loan like a bridge loan?

this is a denial -- P & I payments were set up for a 3 year balloon based on a 15 year amort. Denied due to excessive obligations in relation to income.

I would report the occupancy as non owner occupied. The actual dwelling that is being taken as security is not nor will it ever be his residence.

thanks....that makes sense now. I was trying to read too much into it.

Gotta love HMDA!!!