Without regulations or regulatory guidance on this topic, I would agree with your interpretation at this point. We might get clarification on this when we have additional information. If a barn is part of residential property securing the loan and it isn’t used as a residence, it appears to be exempt from the requirement. This doesn’t seem to be the case for land only with a barn.
The regulators have said this provision was effective at enactment, but I believe some banks are waiting to utilize this exemption until there is additional guidance – as you know, we don’t have regulations or guidance to give us any additional details. Something to consider as well is the need to insure the structure for safety and soundness reasons.