Owner Occupancy

Posted By: Bec

Owner Occupancy - 11/22/13 06:22 PM

I looked on the threads and couldn't find an answer, probably because this question is really dumb...please bear with me.

I have a construction to permanent one-step loan. What is the correct way to report occupancy? I am getting confused because they are not going to live it the dwelling as it is being built but then they will be living in it after the construction phase. When reporting for HMDA is it that snapshot in time, or do we have to consider the permanent?

Posted By: raitchjay

Re: Owner Occupancy - 11/22/13 06:57 PM

We don't do combined construction-perm loans, but if we did, i'd report the planned occupancy upon completion.....after all, if you considered the construction phase alone, the loan wouldn't even be reportable. Hope that helps.
Posted By: MMontjoy01

Re: Owner Occupancy - 11/22/13 09:18 PM

We do combined construction to perm loans and we report the occupancy status for the permanent part of the loan. If your loans are like ours, it typically is owner occupied.
Posted By: Dan Persfull

Re: Owner Occupancy - 11/22/13 10:11 PM

From the GIR:

Indicate whether the property to which the loan or loan application relates is to be owner-occupied as a principal residence . . .
Posted By: Bec

Re: Owner Occupancy - 12/10/13 04:41 PM

Thank you for your responses!
Another question tied to this scenario.
What term would you use for rate spread? Would you use only the initial construction phase, only the permanent phase or the whole thing added together?

Thanks again for your help
Posted By: Dan Persfull

Re: Owner Occupancy - 12/10/13 05:52 PM

Click here
Posted By: Bec

Re: Owner Occupancy - 12/10/13 06:18 PM

Thank you Dan!
You'd think as much time as I spend on here I would be able to search effectively. STill have my issues.