HMDA for Commercial Loans?

Posted By: Anonymous

HMDA for Commercial Loans? - 06/28/04 10:14 PM

The HMDA guide for Getting it Right says the HMDA requires depository lenders to collect and publicly disclose info about housing-related loans. Does this also apply to commercial loans?

Also, can I get confirmation that you would not report a loan in which the collateral was a dwelling and the purpose was for inventory or construction of a commercial building?

Posted By: David Dickinson

Re: HMDA for Commercial Loans? - 06/29/04 01:31 AM

First, HMDA applies to commercial loans to purchase, improve or refinance dwelling secured loans. Read the definition of "dwelling" in Reg C and it's Commentary:
Dwelling means a residential structure (whether or not attached to real property) located in a state of the United States of America, the District of Columbia, or the Commonwealth of Puerto Rico. The term includes an individual condominium unit, cooperative unit or mobile or manufactured home. [§203.2(d)]

The definition of “dwelling” is not limited to the principal or other residence of the applicant or borrower and thus includes vacation or second homes and rental properties. A dwelling also includes a multifamily structure such as an apartment building. Recreational vehicles such as boats and campers are not dwellings for purposes of HMDA. [Commentary to §203.2(d) #1 & #2]

Second, HMDA does not apply to the scenario you describe as it is not a dwelling purchase, improvement or refinance.