Answer:
Answer by David Dickinson:HMDA doesn't consider whether it's a business or consumer purpose for coverage. If you are purchasing a dwelling (even a rental) and securing it by a dwelling (even if a different dwelling), this is subject to HMDA reporting.
Answer:
Answer by Dan Persfull:HMDA does not look at whether the purpose is consumer or business. If the purpose of the loan request meets the definition of a home purchase loan at 203.2(h), home improvement loan at 203.2(g) or a refinancing at 203.2(k)(2) the loan request is subject to HMDA reporting.
I'm not sure about your second question. You say approved application then in parenthesis say it was not closed/funded. Therefore I have to assume this is an approved but not accepted application. You will report it on the LAR just as any other approved but not accepted loan request. Since it appears the primary residence was the only property to secure this loan that property information is the one you will report on the LAR.
Answer:
Answer by Jim Bedsole:Well, first, HMDA doesn't exempt business purpose loans from LAR reporting. If a loan is to purchase a dwelling (sounds like yours is) and is secured by a dwelling (doesn't have to be the dwelling being purchased - again, sounds like yours is) it is reportable as a home purchase loan. The occupancy and property data you report would be based on the property being purchased (the rental home), not the property securing the loan.
Now, HMDA also requires reporting of certain pricing-related data. For purposes of what to report here, whether or not the loan is subject to Regulaton Z does come into play. Under the Reg Z rules, a loan to acquire non-owner occupied rental property is considered "business purpose" and is therefore exempt from Reg Z. For Rate Spread, you'd report "N/A". For HOEPA Status, you'd report code "2".
First published on BankersOnline.com 5/17/10
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