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VRBO or Air BNB

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Question: 
Are loans to finance a VRBO or Air BNB considered a dwelling for HMDA or transitory?
Answer: 

The definition of the term "dwelling" does not specifically mention either VRBO or Air BNB. The definition does clarify that the term does not include transitory residences such as hotels. VRBO or Air BNB might fall into the category of transitory residence. If the dwelling is used exclusively for VRBO or Air BNB then it is likely to be considered a transitional property. If a consumer's principal dwelling is used occasionally as a VRBO or Air BNB then it is likely to be considered a dwelling.

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First published on 03/28/2021

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