Let's say Jim Bob and Betty Lo DBA J&B Investments are buying a rental house. Yes, it's HMDA reportable but the confusion is about whether or not to collect/report GMI and Income. My first instinct is no since the DBA is not a natural person, however others disagree since their names are listed as the DBA and will be included on the Core System, Note, & Deed of Trust as "Jim Bob and Betty Lo DBA J&B Investments". Honestly I can see the argument for both sides as the saying goes "Six of one and a half dozen of the other". What are everyone's thoughts? Many Thanks!

If there is no legal entity (a partnership, an LLC, a corporation) you are dealing with individuals.

Whenever dealing with a DBA, we always report GMI.

Bear in mind that people tend to throw around "dba" as if it only occurs in a sole proprietorship. A "dba" is simply a trade style. A corporation can use a trade style and "dba" that name. A bank can use "dba" trade styles.

This dba is a General Partnership. Sorry I didn't include that in my original post.

If that partnership is a legal entity they are not doing business as the general partnership, the general partnership is doing business on its own behalf. A DBA would be if the general partnership (set up as a real, organized general partnership) was

J&B Investments DBA Cool Investments

"since their names are listed as the DBA and will be included on the Core System, Note, & Deed of Trust as "Jim Bob and Betty Lo DBA J&B Investments"."

I surely hope that you have legal counsel involved in this transaction. Titling notes and deeds in this manner is not normally acceptable. As Kathleen said, if the loan is the GP - what the heck is the name of the GP - It surely is not "Jim Bob and Betty Lo DBA J&B Investments".

I guess I had better include this in my July 16 webinar on business purpose vs consumer purpose loans...I can touch on "what is a legal entity"!

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Thank you! This was what I thought too. Sometimes these lending assistants can really make me second guess myself.

Thanks! I am glad several of you are seeing this the same way I did. Yes, I am passing this one on to Compliance Officer. What a welcome back from vacation it will be.