How to Report Several Loans on HMDA LAR

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Question:

I am unsure if I should report on my HMDA LAR several different loans we have done. The first has the collateral of a stock certificate but the loan was done to purchase a home, another has a perpetual loan agreement as collateral but was done to purchase a home, the last was done by a church to purchase a home they are using as a group home which isn't really considered anyone's primary residence.

Answer:

Home purchase loans must be secured by residential real estate (not necessarily the property being purchased) in order to be HMDA reportable. The definition of a home purchase under Regulation C (HMDA) is:

"Home purchase loan means a loan secured by and made for the purpose of purchasing a dwelling."

If the property being purchased by a church is for temporary housing and not as anyone's primary residence it would not be reportable. Transient housing is not reportable. The Commentary to Regulation C provides guidance on reportable properties:

"Dwelling.

1. Coverage. The definition of "dwelling" is not limited to the principal or other residence of the applicant or borrower, and thus includes vacation or second homes and rental properties. A dwelling also includes a multifamily structure such as an apartment building.

2. Exclusions. Recreational vehicles such as boats or campers are not dwellings for purposes of HMDA. Also excluded are transitory residences such as hotels, hospitals, and college dormitories, whose occupants have principal residences elsewhere."

First published on BankersOnline.com 6/11/12