Skip to content

Requirements for Line of Credit Purchase

Answered by: 

Question: 
We are making a loan for a $50,000 line of credit to an LLC. They will use it to purchase used mobile homes and place them on vacant lots that they have available. Once they have them in place, they will rent the vacant mobile homes to renters with lease agreements. My questions are: Do we need a flood certification for each used trailer that they purchase with the line of credit? Do we need to fill out a HMDA LAR for each mobile home purchased with the line of credit?
Answer: 

Do we need a flood certification for each used trailer that they purchase with the line of credit?

If you are taking the mobile homes as collateral, then all flood regulations will apply.

Do we need to fill out a HMDA Lar for each mobile home purchased with the line of credit?

The reporting of lines of credit for HMDA is optional.

First published on BankersOnline.com 6/6/11

First published on 06/06/2011

Filed under: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics