Answer:
Before we worry about codes, we need to determine if this is a HMDA reportable application. HMDA excludes from the definition of a dwelling any transitory residences such as hotels, hospitals, and college dormitories whose occupants have principal residences elsewhere. To determine whether the group home meets the definition of transitory residence will take some investigation.
Example 1 - Your loan is to purchase a group home for troubled teens. This would fall into the transitory category as the intent is to provide housing while the teens obtain counseling and therapy. It is not HMDA reportable.
Example 2 - This loan is to refinance an existing credit that is secured by an assisted-living facility. The majority of the residents here have their own apartments and they reside in this building. This is basically an apartment building for people who use scooters to get around instead of skateboards. It is HMDA reportable as multi-family code 3.
First published on BankersOnline.com 11/24/08
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