Land loans

Land loans

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Question:

A loan was originated to purchase a subdivision lot. The borrower plans to apply for a construction loan in the next two years in order to build a new home. Does this plan for a construction loan make this lot loan reportable for HMDA?

Answer:

A land loan is HMDA reportable only if the proceeds of the land loan, not a separate loan, will be used to construct the new dwelling. Sec. 1003.3(c)(2).

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