Collateralized with Hypothecation Agreement

Answered by:

Question:

A loan to an individual for business purposes that is collateralized with a hypothecation agreement and a security deed on another person's (not a borrower) one to four family dwelling, HMDA reportable?

Answer:

If this is the original business purpose loan secured by a home, it is not reportable (not a purchase, home improvement or refinance). If it is a refinance of a business purpose loan to the same borrower and is secured by a residence, it is reportable as a refinance.

First published on BankersOnline.com 11/29/10