Hi, I am reviewing a loan for an individual that is for a commercial purpose that is secured by a abundance of caution 1-4 family property. Will I need to collect GMI?

Business purpose loans for other than the purchase, refinance or improvement secured by residential property are not reportable.

Okay thank you.

Maybe I misunderstand the question, but a business purpose loan that is for purchase, refinance or home improvement would not be reportable under 1071 but would be reportable under HMDA.

On the other hand, a business purpose loan that is for for purchase, refinance, or home improvement would be not be reportable under 1071 but would be reportable under HMDA.

I don't recall the abundance of caution exception found in CRA in 1071.

There are 6 types of excluded transactions under 104(b) (loans reportable under HMDA are one type of loan) plus 4 more credit extensions not considered as small business: Factoring, leasing, consumer-designated credit and purchased loans.

Do you consider the loan to be reportable under HMDA? If so, then you wouldn't report it under 1071. But if you don't report it under HMDA it looks like it should be reported under 1071 because it appears to meet the qualifications of a small business credit under 1071.

The way I read your situation is that the transaction is excluded from HMDA reporting under Comment 3(c)(10)(4) iii and therefore would be reportable under 1071.

It can be confusing. Maybe it's me who is confused!

Len - I do not think so - I answered this question solely based on HMDA and missed the fact that this was posted in the 1071 forum. Your answer is much more complete.