In the situation where the applicant is refinancing their owner occupied home to purchase a vacation home - is this a purchase or refi for the LAR? Furthermore, would the occupancy be owner or non-owner occupied?

Wouldn't it be a non-owner occupied purchase?

The occupancy would depend on the property securing the loan. If it is secured by the primary residence to purchase a vacation home, it would be an owner occupied purchase, with the location information of the primary residence. If both properties are securing the home, it would be a non owner occupied purchase with the location information of the vacation home. Clear as mud?!

In the HMDA GIR - Appendix A page A-2 it states to code the Owner Occupancy of the property to which the loan or application relates. In this case, the loan is to purchase a non-owner occupied dwelling. The fact that an owner-occupied dwelling secures the loan is not relevent.

Likewise on page A-4 for property location, you enter the location of the property to which the loan relates.

If you think about it, coding the loan as an owner occupied purchase with the address of the already existing primary residence would not be correct. Your LAR would be indicating that your customer just bought his or home again.

I could be wrong, but I think I have read in other threads that you go with the property securing the loan. I'll have to do a search. I'll let you know what I find! Isn't HMDA fun?

Here's One
Here's Another
And one more
A couple of posts I found on this subject. I hope this works, I wasn't exactly sure how to link to other threads. I did a search using +HMDA +Occupancy, and Dan Persfull as the poster. As much as it doesn't make sense, if you are purchasing one home and securing it with another, you report the occupancy status and location of the property securing the loan.

Hmmm..and I had the FDIC tell me exactly the opposite on a HMDA loan a couple of years ago. They told me I had to report the status on the property that was the purpose of the loan request, not the property securing the loan request.

I should clarify - the I was told the OCCUPANCY STATUS was based on the property that was the purpose of the loan request, but the LOCATION was to be based on the property taken as collateral.

Pick a dart - throw it.



Go figure.

Both properties relate to the loan request/application. One as security the other as the purpose such as purchase or HI. For purchases and refis you always report the information on the property securing the loan - if secured by more than one property and one of those properties is the one being purchased or refi'd then you report the information on it. For HI loans you always report the information on the property being improved, regardless what property or properties secures the loan.