Business Secured w/Personal Residence-HMDA?

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Question:

An individual (borrower) purchasing a business is securing it with their personal residence. Is this HMDA reportable?

Answer:

No. Such a loan is not financing the purchase or improvement of a residential property, nor is it refinancing another dwelling secured loan to the same borrower. If this loan is refinanced at a later date and the refinance is also dwelling secured and to the same borrower, the refinance will be HMDA reportable.

First published on BankersOnline.com 5/27/13