Reporting for a rental property

Posted By: Everest

Reporting for a rental property - 01/11/16 09:44 PM

I am wondering if I am thinking correctly on how to report the following information on the LAR. The loan is to purchase a 1-4 single family home for rental purposes. However, the loan is secured by the borrowers primary residence. Is this the accurate way to report the following:

Property Type: 1-4 Single Family (rental property)
Purpose: Purchase
Occupancy: Non OO (based on rental property and not the owners actual home that is securing the loan)
MSA/State/County/Census Tract info: code based on the rental property location and not the property securing the loan

Thanks.
Posted By: Melissa S

Re: Reporting for a rental property - 01/11/16 09:52 PM

Appendix D of the GIR (page D-9) states "For a home purchase loan, an institution reports the property taken as security. If an institution takes more than one property as security, the institutions reports the location of the property being purchased if there is just one."
Posted By: Skittles

Re: Reporting for a rental property - 01/11/16 10:07 PM

I disagree. If the loan is secured by the primary residence it is owner occupied. It would be a purchase; however the property taken as collateral is owner occupied and you would geocode that property.
Posted By: SMQ, CRCM

Re: Reporting for a rental property - 01/12/16 06:09 AM

FWIW, ditto what Skittles said.

And what this section should say----
Appendix D of the GIR (page D-9) states "For a home purchase loan, an institution reports the property taken as security. If an institution takes more than one property (and one of the properties is the one being purchased) as security, the institutions reports the location of the property being purchased if there is just one."
Posted By: Colorado Girl

Re: Reporting for a rental property - 01/14/16 07:40 PM

As stated above, the Occupancy should be reported for the property to which the loan or application relates (geocoded), the property type is also indicated for the property to which the loan or application relates. So in this case, the property type will be indicated for the borrowers primary residence, not the rental property.