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#2274164 - 08/15/22 05:51 PM HMDA
Anonymous Offline
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We have a borrower that is looking to purchase a property with a dwelling and large shed type building. He intends to use the Shed for commercial use and the home to live in. The value of the commercial side is greater so I am thinking we would not report this loan for HMDA, correct?

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#2274176 - 08/15/22 07:01 PM Re: HMDA Anonymous
raitchjay Offline
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If the facts presented are correct, then yes, you wouldn't report it as the mixed-use test would reveal a primary purpose of the property that is not residential in nature.
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#2274427 - 08/18/22 09:50 PM Re: HMDA Anonymous
COMPL101TX Offline
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Hi raitchjay- When you referred above to the mixed-use test, were you referring to the commentary under the definition of a dwelling? If so, I'm confused on how this interpretation applies to the question by Anonymous.

The commentary seems to apply to when you are determining whether a property is a residential dwelling, but not to multiple separate buildings. I have a similar situation, with a commercial loan purchasing storage units with a rental house (manufactured home) on the property. There is no question that the rental house is a dwelling, and it would be a purchase. Is it industry standard to apply the mixed use properties commentary to the whole transaction and not per building?

4. Mixed-use properties. A property used for both residential and commercial purposes, such as a building containing apartment units and retail space, is a dwelling if the property's primary use is residential. An institution may use any reasonable standard to determine the primary use of the property, such as by square footage or by the income generated. An institution may select the standard to apply on a case-by-case basis.

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#2274428 - 08/18/22 09:55 PM Re: HMDA Anonymous
raitchjay Offline
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It all comes down to the definition of property. I'm going off of memory at this moment as i'm getting ready to leave....but yes, once upon a time i would have agreed with you that mixed-use was only employed on individual structures....but there has been clarification now (i'm fairly certain...again, don't really have the time to look it up at the moment) that "property" doesn't refer just to ONE structure, but ALL structures on one property. At this moment, i'm struggling to remember where to look for this adjustment to the meaning of "property", but i'm fairly certain that that meaning has indeed been clarified. If no one shows up with a better answer to my rambling one, i'll attempt again tomorrow hopefully.
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#2274429 - 08/18/22 09:56 PM Re: HMDA Anonymous
raitchjay Offline
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I would caution that simply because the example given is of one structure that doesn't mean that is the definitive guide......they aren't always great at giving examples from multiple points.
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#2274444 - 08/19/22 02:13 PM Re: HMDA raitchjay
Truffle Royale Offline

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Here's the thread that raitchjay references about more than one building on a property qualifying for mixed use.

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