SECOND MORTGAGE TO PURCHASE A LAND
I have a Principal Residence second mortgage topurchase a land. It is this transaction HMDA reportbale if the land loans are excluded from HMDA? Thanks
Please I need an answer!!!!
I use the most recent version of the HMDA reporting guide found on the FFIEC website. It usually has the answer to any of our reporting questions. http://www.ffiec.gov/hmda/pdf/2008guide.pdf You should be able to copy and paste this link to your browser. Hope this helps.
According to the 2008 HMDA Reporting Guide: Transactions to be Reported An application or loan is reported if it falls into one or more of the following three categories: home purchase loan, home improvement loan, or refinancing. 1. A home purchase loan is any loan secured by and made for the purpose of purchasing a dwelling. 2. 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) or (b) any loan not secured by a lien on a dwelling to be used, at least in part, for one or more of those purposes that is classified as a home improvement loan by the institution. 3. A refinancing is any dwelling-secured loan that replaces and satisfies another dwelling-secured loan to the same borrower. See page 29. Home equity lines of credit (HELOCs) for home purchase or improvement may be reported at the institution’s option. Report only the amount that is intended for home purchase or home improve - ment purposes. An institution that reports home equity credit line originations must also report any applications that do not result in an origination. Your loan does not seem to fit into any of these 3 categories. I would also like to suggest that you email hmdahelp@frb.gov for a direct response from the FRB so you have the government reponse in writing for your files.
ATIR: This has always been a tough question in my mind too. If you remove the collateral from the conversation, the purpose of the loan is to purchase raw land, which is NOT a HMDA reportable loan. Reg C states that "Loans on unimproved land" are expempt from reporting. And since a purchase MUST be secured by real estate (which your loan isn't), it can't fit into the description of a PURCHASE loan. I agree with the other posters that it is NOT reportable.