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HMDA LAR-Residence or Investment

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Question: 
We are doing a new loan to refinance an existing loan at another bank. The borrower owns the home and the co-borrower lives in the home. The borrower rents to his son. For HMDA purposes do we consider this an investment property or primary residence? To the borrower it is investment property but the co-borrower it is primary residence.
Answer: 

If the son has an ownership in the property the Occupancy Type is Principal Residence. If the son has no ownership then it is not his property.

First published on 02/13/2022

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