HMDA and Home Improvement

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Question:

If the purpose of HMDA is home improvement, should this only be if it’s home improvement, or should this apply any time the loan is not secured, but still has a HMDA purpose?

Answer:

The definition of a home improvement loan is: "A home improvement loan is (a) any dwelling-secured loan to be used, at least in part, for repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which the dwelling is located, and (b) any loan not secured by a lien on a dwelling (i) that is to be used, at least in part, for one or more of those purposes and (ii) that is classified as a home improvement loan by the institution."

First published on BankersOnline.com 11/22/10