I have a commercial business purpose loan for home improvement that I am currently reviewing for HMDA reporting. The loan has three borrowers to two individuals and to a land trust. The property was already purchased and is in the land trust name. Occupancy is investment and the funds will be used to flip the property and sell it once completed. The promissory note is signed by all three borrowers with the two individuals listed first and land trust last. Application is to the two individuals. When the loan uploaded to our HMDA LAR it has the demographic info and income for both individuals. We don't see a lot of loans come through in a land trust and I was just wondering if there is anything I have to do differently? I did review the regulation and the 2024 HMDA Getting it Right guide but I didn't find any information regarding a land trust. I couldn't find anything to confirm if I report the demographic information for the individuals and report their income when a land trust is also a borrower on the loan. Thanks.

If the trust is a borrower, income would be NA. You would report the demographics of the first two applicants.

7. Income data—non-natural person. A financial institution reports that the requirement is not applicable when the applicant or co-applicant is not a natural person (e.g., a corporation, partnership, or trust). For example, for a transaction involving a trust, a financial institution reports that the requirement to report income data is not applicable if the trust is the applicant. On the other hand, if the applicant is a natural person, and is the beneficiary of a trust, a financial institution is required to report the information described in § 1003.4(a)(10)(iii).

Ok thank you so much. I appreciate your help. I could not find this and thank you for showing me where it is located.