HMDA Reporting - Mixed Used Property Loan

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Question:

I have a new commercial loan with the purpose of refinancing an existing loan (secured by mixed use property) and to purchase a Condo investment property. The mixed use property has a 1-4 dwelling on it, but also has commercial buildings on it as well (a catering business). The commercial buildings have more square footage than the 1-4 dwelling. Is this commercial loan HMDA reportable? The new loan is not a LOC, but is a one time disbursement with PandI monthly payments.

Answer:

Mixed use property is a single building being used for both non-residential and residential use. If a stand alone 1-4 dwelling is located on the property and it secures your loan then you have a loan secured by a dwelling. If the loan's purpose meets the definition of a home purchase, home improvement or a refinancing then it is reportable.

First published on BankersOnline.com 4/27/09