We have a branch that is located in a college town. They are beginning to finance the purchase of condos by parents for their college student to live in. They are possibly going to be renting out part of the condo to another student. ie: two bedroom condo. This will not be temporary financing so it will be HMDA reportable. But, how should it be reported. As rental property? owner occupied? the lender that is doing these loans is thinking it should be owner occupied because the parents will be staying it in sometimes, mainly during football season. Also the lender is thinking because they are planning on putting the loan in the student on the loan with the parent(s) and their name on the title also. I am really confused on this, so I would greatly appreciate any thoughts, etc on this.

Thank you.

If the student is going to be on title with the parents then I'd say these were owner-occupied purchases. Doesn't matter that they're going to rent out a room.

If the title is also held in the child's name who will be living there then it would be owner occupied as Truffle Royale said because it will be the child's primary dwelling.

If the child's name is not on the title then it will be non-owner occupied whether the parents stay there 2 weeks or 2 months out of the year. It is not their primary dwelling and second homes and vacation homes are non-owner occupied for HMDA purposes.

Thank you both so much.....

Boy, I wish my mommy and daddy took care of me like that.