I'm reviewing a loan and the purpose was to purchase a 3-bedroom trailer on a block foundation which the borrower plans to rent. All of documents indicate the borrower is residing at the property until it is rented. Would you select primary residence or Investment property on the LAR?

You will probably get mixed answers on this as we have had quite a few discussions regarding current vs future use and HMDA reporting.

Do you know when they plan to rent it out or when they plan to move out? 1 month or 1 year could bring different opinions...

As Adam state, there are different schools of thought. I'm in the "what will it be when the proceeds are applied" camp. Thus, this property will be a rental and not owner occupied. That does assume they will be renting it out right away (or soon after closing).

The loan closed five months ago. Borrower still lives at the property.

I hate to say it, and I'm not sure exactly what all documentation you may have noted above...but it kinda sounds like there is the slightest possibility the LO 'decided' it was commercial purpose to avoid TRID. I mean...it does happen.

js.

Joker: You may be on to something.

It wouldn't be the first time an LO tried to call something business purpose to avoid TRID.

Nope...sure wouldn't be says the voice of experience