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Is a consumer loan to purchase land where there is a manufactured home (MH) on the land that is planned to be removed reportable? From what I have read, it is reportable, however in this case the MH is old, infested, and planned to be removed, but not before closing that I can tell and the appraisal references the MH but not its quality at all. The lender stated in a memo that the MH is infested. Would that be sufficient to support not inhabitable, or would you say it should be reported?
Is this loan subject to ATR?
HMDA applies to an open-end line of credit or a closed-end mortgage loan, unless one of the exemptions apply. In either case the line of loan must be secured by a dwelling. The term dwelling includes a manufactured home. Regulation C does not discuss the condition of the dwelling. If the MH is removed prior to origination the transaction would not be covered. The safe answer is to report for HMDA.
The ability to repay (ATR) rules contain in Section 1026.32 of Regulation apply to any consumer credit secured by a dwelling. Once again the MH is a dwelling. There are exemptions, but none that are readily apparent in this case.
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