HMDA dwelling to non-dwelling

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Question:

Is a dwelling that will be converted to a non-residential use after sale a dwelling for HMDA purposes? The seller will be residing in the property until right before the loan closing.

Answer:

No, the use of the property prior to purchase does not matter. If the dwelling will be converted to a non-dwelling purpose, such as a day care center or office building, the new loan will not be dwelling-secured and will not be reported for HMDA. This is clarified in the revised HMDA commentary, but the clarification is applicable under current rules.
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