A commercial loan was originated in 2018, for the purpose of a refinance, on ground only for a manufactured home community. The units are owned individually and not part of the collateral - only the ground is secured. We're receiving conflicting opinions as to whether or not it's a HMDA reportable loan because housing units are located on the ground. Has anyone else encountered this issue, and if so, what was the resolution regarding HMDA? Thank you..

You either have a security interest in the homes or you don't. If you don't (the homes are separately titled and you don't have a security interest in them), then it isn't reportable. If you do have a security interest in them (either they are separately titled and you are taking a security interest.....or the titles have been retired, in which case you have a security interest in them by default by taking your security interest in the dirt), then it is reportable.

See below.

"The units are owned individually."

If that ^^^ is true (which would mean the titles have NOT been retired and are held individually by the occupants), then the loan would NOT be reportable.

See below.

I just had a thing pop in my head......the HMDA changes had some weird things to say about manufactured home communities.......i need to check those rules...i'll try to do that and pop back in here. (I haven't faced such a loan yet under the new rules.)

Yes.....i don't know whether to edit (delete) my first posts or not...i was answering with my 2017 HMDA brain.

A loan secured by a manufactured home community is HMDA reportable even if not secured by the dwellings themselves.

Here's the citation for that. Sorry for any confusion i caused by my trip down HMDA memory lane.

2. Multifamily residential structures and communities. A dwelling also includes a multifamily residential structure or community such as an apartment, condominium, cooperative building or housing complex, or a manufactured home community. A loan related to a manufactured home community is secured by a dwelling for purposes of § 1003.2(f) even if it is not secured by any individual manufactured homes, but only by the land that constitutes the manufactured home community including sites for manufactured homes. However, a loan related to a multifamily residential structure or community that is not a manufactured home community is not secured by a dwelling for purposes of § 1003.2(f) if it is not secured by any individual dwelling units and is, for example, instead secured only by property that only includes common areas, or is secured only by an assignment of rents or dues.

Raitchjay is correct that a loan secured by a manufactured home community is HMDA reportable even if not secured by the dwellings, based on the citation he provided, which is comment #2 to the definition of a "dwelling" found in 1003.2(f).

Raitchjay: So appreciate your research and identification of the section for reference! Huge help in locating the answer. Many thanks!

Adam Witmer - Thank you!