Understanding occupancy under HMDA

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Question:

A loan is secured by a rental dwelling owned by our borrowers. The dwelling is rented out for vacations and our borrowers do use it for personal vacation time, but never for more than 14 days in a year. We are having a disagreement whether this is HMDA reportable or not. If reported, what occupany code do we use?

Answer:

The 14 day rule is for Regulation Z and IRS purposes. HMDA does not have a minimum occupancy threshold. Occupancy is determined based upon any personal use by the applicant/borrower. Occupancy can also get tricky if the collateral is not owned by the applicant/borrower. The webinar will go into occupancy in detail so that you understand the intricacies.

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Learn more about Kathleen Blanchard Improving HMDA Knowledge and Year-End LAR Preparation webinar.