Tracking for Census Tracts

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Question:

When tracking for census tracts, do we tract based on where a borrower lives or where a borrower is purchasing an additional property? Are we tracking the borrower or the property?

Answer:

As a rule, you will denote the property being purchased or improved. The HMDA - Getting it Right manual also addresses multiple properties. For a home purchase loan, an institution reports the property taken as security. If an institution takes more than one property as security, the institution reports the location of the property being purchased if there is just one. If the loan is to purchase multiple properties and is secured by multiple properties, the institution reports the location of one of the properties or reports the loan using multiple entries on its HMDA/LAR (with unique identifiers) and allocating the loan amount among the properties. For a home improvement loan, an institution reports the property being improved. If more than one property is being improved, the institution reports the location of one of the properties or reports the loan using multiple entries on its HMDA/LAR (with unique identifiers) and allocating the loan amount among the properties.

First published on BankersOnline.com 10/22/07