HMDA Loan

So is an $18 Million loan to refinance a 47 unit condo, considered a HMDA Loan.

I say it is... Am i wrong?

Was the original loan secured by the condos? Is the new loan secured by the condos? Is the borrower the same? If yes to all these, then it's probably HMDA Reportable, provided it's not temporary financing and provided it's not an LOC if you don't report LOCs.

Try taking it through the BOL flowchart to be sure: http://www.bankersonline.com/compliance/2004_HMDA_Flowchart.pdf

Yes to all of them...

So it will be classified as a multifamily then?

Thanks Manimal..

Individual condos are treated as 1-4, there are just 47 of them:

See GIR page A-1 (emphasis mine):

4. Property Type.
Indicate the property type by entering the applicable code from the following:
Code 1—One- to four-family dwelling (other than manufactured housing)
Code 2—Manufactured housing
Code 3—Multifamily dwelling

a. Use Code 1, not Code 3, for loans on individual condominium or cooperative units.

b. If you cannot determine (despite reasonable efforts to find out) whether the loan or application relates to a manufactured home, use Code 1.

Yes...But this loan is to a corporation for around $20 Million for the Condo building, not the individual units.

So then the code will be 1 - One to Four Family then?

I've only seen them coded as 1-4, never as multifamily.

The following language is on page 12 of the HMDA GIR.

"For multifamily dwellings (housing five or more families), and"

The following is from page D-3 of the HMDA GIR.

Dwelling.
1. Coverage. The definition of “dwelling” is not limited to the principal or other residence of the applicant or borrower, and thus includes vacation or second homes and rental properties. A dwelling also includes a multifamily structure such as an apartment building.

This is definitely Code 3, multi family.

No, I'd say it is definitely NOT multi family.
The borrower intends to sell them off as single units.
Therefore, there are multiple, one family units in the building.
Like manimal said above, I've never seen condos coded as multi family...ever.

I can see your point, but want to clarify something. If you had an appt building you would code it 3, multi-family; but what you are saying, if you intend to sell them off individually, then it would be 1-4, correct, as, for example, appts in NY, which are sold, not rented?

yes, absolutely.
Each unit is deeded separately so it is an individual 1-4 family unit that exists in a building that contains a number of 1-4 family units.

Now...take that same apartment building and have only one owner who is renting out each unit. The deed for the entire building has only one name on it. Therefore, in this scenario, the apartment building would be reported as multi-family for HMDA.

Intention has nothing to do with it. Look at the title to the property. Is it one titled piece of property or is it titled as units 1 thru 47 or some other such individual designation? It all depends on whether the individual units are currently separately titled. If they are, they are multiple 1-4 family properties, if they are not, then it currently is a multi-family property.

Wow...thanks for everyone's input...I will find out how the property is titled on the loan!

OK:

The $20 Million dollar Refinance to a Corporation is on a property with 1-47 as individual units...

So the $20 Million loan will be:

- As a 1-4 Family
- and Non-Owner Occupied

Am I correct?

Thanks

? - Just want to confirm my last post from yesterday.

I just want to make sure that it will be 1-4 family and non-owner occupied.

Thanks

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Yes.

Do you have the HMDA Getting it Right? I think that guide would help you if you don't already have it.

http://www.ffiec.gov/hmda/guide.htm

Yes:

But this specific example was not clearly stated in the guide and I just wanted to confirm after the above discussions...

Thanks Again