Commercial Reportable?

Posted By: JobSecurity

Commercial Reportable? - 06/02/22 08:22 PM

I have a commercial loan for funds to build a rental. The property they are building it on is currently owned by the borrowers. They are using an existing rental as collateral. So not HMDA reportable right? Not a purchase, not a refi, and not a home improvement since it will be from the ground up. It has been a long week!
Posted By: raitchjay

Re: Commercial Reportable? - 06/02/22 08:25 PM

It would qualify as a purchase unless it's a temporary loan. Is the loan structured as construction only with a perm loan to follow (not reportable...but the perm loan to follow would be) or is it construction-perm all in one (reportable)?

ETA: add clarifying point about perm loans.
Posted By: raitchjay

Re: Commercial Reportable? - 06/02/22 08:26 PM

3. Construction and permanent financing. A home purchase loan includes both a combined construction/permanent loan or line of credit, and the separate permanent financing that replaces a construction-only loan or line of credit for the same borrower at a later time. A home purchase loan does not include a construction-only loan or line of credit that is designed to be replaced by separate permanent financing extended by any financial institution to the same borrower at a later time or that is extended to a person exclusively to construct a dwelling for sale, which are excluded from Regulation C as temporary financing under § 1003.3(c)(3). Comments 3(c)(3)-1 and -2 provide additional details about transactions that are excluded as temporary financing.


I think people read this definition and sort of assume it's talking about consumers constructing their primary residence, but there's nothing in it that says that.
Posted By: JobSecurity

Re: Commercial Reportable? - 06/02/22 08:44 PM

Thank you raitchjay. Just needed direction.