Applicant is ABC Horseboarding. Loan is to purchase property with large personal residence and 2 small rentals in addition to horse stalls to be rented out. Currently the stalls are not rented. SBA Funds are for the purchase of the property and a start up business. HMDA reportable? Occupancy code? The LLC will not be occupying any of the residences. Any help greatly appreciated.

If everything is to be rented out, it is business purpose, which would be why SBA is funding as a business loan.

If the loan is secured by the home, then yes, it would be a HMDA reportable purchase. If the property is titled in the business name, I would code it as non-owner occupied.

I believe it would depend on what the primary purpose for the property is. Is the primary purpose for dwelling, or for horse stalls? If the "2 small rentals" are dwellings (i.e. residential rental homes), then that could still be HMDA reportable. The good news is that since you have a business borrrower, the collection of GMI is not applicable.

This is one of those deals that's not black and white, so I would recomend that whatever decision is made (whether HMDA reportable or not) that you clearly document the loan file what your decision was and support why you made that decision.

Mixed-use can't (IMO) be used in that way. The mixed-use test is to be employed when there's mixed-use within a structure, not when you have obvious dwellings with no other use and other structures on the same tract with a commercial use. Their commercial use doesn't change the residential use of the dwellngs.

I agree with raitchjay. What I see here is a purchase money loan for 3 residences and a barn. The SBA loan for the boarding facility does not negate the existence of the 3 residences.

To chime in on the occupancy:

As long as that personal residence is owned by the LLC, it would be non-owner occupied. If, for whatever reason, the home is parceled out separately and the individual who will be living in the home actually owns it, it would be owner occupied.

Since you are talking about LLC's, I was wondering if someone could help me with this question ---- If a loan is issued to a LLC with two owners (one female, one male)how do I report ethnicity, race and sex? Are they recorded as "not applicable" since it is a commercial loan or do I have to record them as applicant and co-applicant and provide the information for each?

Assuming the loan is to the LLC.

If they sign as members of the LLC only then you collect and report no information on them.

If they sign as individuals then you will collect their information but report only one of them as a co-borrower with the LLC.

Thank you Dan!