Legal Definition of "Owner Occupied"

Answered by:

Question:

I need the legal definition of owner occupied. I processed a loan recently for a business and our collateral was vacant land. I was told this would be considered owner occupied because the borrower owns the property. After 15 years as a loan processor, I have NEVER heard it explained this way before. I was told owner occupied is not related to whether the owner lives there, or not.

Answer:

To make your argument one way or the other, you might want to refer to the call report instructions found for schedule RC-C - LOANS AND LEASES line 1.e.(1):http://www.ffiec.gov/pdf/FFIEC_forms/FFIEC031_FFIEC041_201109_i.pdf

First published on BankersOnline.com 6/18/12