Posted By: Anonymous
HMDA HOME IMPROVEMENT? - 06/14/17 09:36 PM
If I have a loan that the proceeds are going to build a work shop (to manufacture sheds) on real property where a dwelling is located, is there a test to see if its HMDA reportable?
I've read that if the shop is income producing then it would not be.
needing guidance.
Posted By: Anonymous
Re: HMDA HOME IMPROVEMENT? - 06/15/17 01:17 PM
anyone?
Posted By: JSD
Re: HMDA HOME IMPROVEMENT? - 06/15/17 01:18 PM
We consider this home improvement for a business purpose not consumer purpose and do not report on HMDA.
Posted By: Anonymous
Re: HMDA HOME IMPROVEMENT? - 06/15/17 01:38 PM
ok I'm confused because there can be business home improvement, rental property being improved for example.
Posted By: JSD
Re: HMDA HOME IMPROVEMENT? - 06/15/17 01:51 PM
All improvements are not a reportable home improvement loan for HMDA. They need to improve the residential portion of property. In your example the improvements are to build a work shop that is income producing - it is not HI for HMDA.
There are several threads on BOL about this topic as it has been discussed previously. (Not technical enough to do the links!)
Rental property would be residential real estate and thus improvements are a home improvement.
Building a business structure on the same land is not improving the residential portion of your property under current rules.