In this week's "Weekly Banker Brief," the following QandA appeared: <a href="http://www.bankersonline.com/lending/guru2011/gurus_ldng100311c.html">Cash Out Refi of Investment Property-HMDA?</a> <em>Question: A borrower is getting a cash out refi of investment property. The money is to reimburse their reserves after they bought a house with cash. Is this a HMDA loan? 1 Answer: No. This loan doesn't purchase or improve the dwelling. It also isn't a refinancing. It is a home equity loan that is not subject to HMDA. 2 Answer: I agree, not HMDA but I would contend this loan is subject to TIL and RESPA based on the information provided. It is not for the acquisition, improvement or maintenance of a non-owner occupied rental property and the purpose as stated appears to be for a personal, family or household purpose which would make it a consumer purpose loan.</em> I think that I need a little clarification. I thought that only HELOC loans that are refinancing are not subject to HMDA reporting. If this is a closed-end home equity refinance, wouldn't it be HMDA reportable?
Are loan modifications required to be reported as CRA loans?
In Commercial Lending, an entity as the borrower does not require HMDA. Recently, my loan officers have been making the "usual guarantors" as Co-borrowers instead. Do I now need to complete this as a HMDA loan?
We are making a loan for a $50,000 line of credit to an LLC. They will use it to purchase used mobile homes and place them on vacant lots that they have available. Once they have them in place, they will rent the vacant mobile homes to renters with lease agreements. My questions are: Do we need a flood certification for each used trailer that they purchase with the line of credit? Do we need to fill out a HMDA LAR for each mobile home purchased with the line of credit?
If the original loan application was completed by the customer for home improvement and later changed to other purpose not HMDA reportable, and the application is denied, do you still report for HMDA for the original home improvement purpose? Example, purpose of home improvement marked out and replaced with auto purchase.
What income do you use for reporting HMDA on commercial property? Should it be the gross amount or the rental income on the property?
A director of a bank has a Freddie Mac Loan and the bank is servicing the loan. Does the bank report the current balance as an insider loan on the Schedule RC-M of the Call Report?
What are the rules for reporting Consumer Loans on Land for CRA purposes? More specifically, would you use the geo info of the consumer or the land being bought or refinanced?
My bank does mainly commercial lending. We have a couple of 'refinance' scenarios that we have questions on. We had a loan approved in 2010 - the purpose was refinance business debt and my bank was taking a subordinate lien position on the principal's residence. After the bank's approval the borrower did not approve our terms and my lending officer did no further investigation so I do not know if the loan we were paying off was secured by a lien on their personal residence or not to know if it falls under HMDA. How do we make the determination as to if it is HMDA or not?
The bank is making a loan to a consumer to purchase a lot. The collateral for the loan is another lot with a dilapidated house on it, which is to be torn down. Our appraisal states that it is subject to the old house being torn down. I know the loan is subject to Reg. Z, but is it subject to RESPA?