Home Improvement Loan Secured by Vacant Lot

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Question:

For HMDA reporting, when a home improvement loan is secured by a vacant lot, would we use the lien position of the lot, or consider it unsecured?

Answer:

This loan would be a non-dwelling secured HI loan and therefore must also be classified as a HI loan by your institution to be reported. If you do classify and report it as HI, the lien status would be a Code 3.

First published on BankersOnline.com 5/2/05