Double checking..

Posted By: Dodge

Double checking.. - 05/04/11 08:26 PM


Borrowers are purchasing a storm cellar to be placed at their daughter's home. The borrowers are using their primary residence as collateral.

For HMDA this will be coded as a home improvement loan because it's improving real property. We will report the property address of the daughter's residence because that is where the improvement is being done. Since, the borrower is using their primary residence for collateral we will code the owner occupancy"owner-occupied as principal dwelling."

Correct?
Posted By: Dan Persfull

Re: Double checking.. - 05/04/11 08:35 PM

The occupancy status would be correct but not for the reason you state.

You report the status of the property being reported on the LAR which in this case is the daughter's primary residence and is owner occupied.