[Valerie Redman]

I have a question concerning a reportable property, the employee is using land for the 1st lien, but they also have taken a mobile home in as collatrial but not placing a lien on the trailer. The land covers the total loan amount, the trailer is only valued at around $6,000.00 would this be a HMDA reporting?

Topic

[amarie1126]

If I am understanding correctly and the loan is going to be secured by the mobile home, and be part of the loans collateral, then it is HMDA reportable (That is, if the mobile home was made after June 15, 1976; Loans secured by mobile homes built prior to June 15, 1976, are not dwelling-secured for HMDA purposes)

[Brent V]

Thank you @amarie1126 for the very accurate reply!

[pcorder]

When you say “reportable property”, do you mean the purpose of the loan was to purchase, refinance or improve the mobile home (and land)?

Thanks,

[Valerie Redman]

I went back and looked at the write up it says that it is to refinance investment property.

[pcorder]

Okay, I’m sorry for all the questions.

Does the existing lien being satisfied with the new loan also include the mobile home? Did the appraisal on the land for the new loan include the MH? Or, does the lien being satisfied contain land only or non dwelling buildings? So sorry, it really becomes convoluted sometimes.

IMO, if you don’t place a lien on the MH, and/or if your appraisal does not include it in the appraised value, it would not be reportable.

Can someone please let me know, if I’m wrong?

Thanks so much!

[amarie1126]

Well really, whether the mobile home is included in an appraisal or not, if the lender is taking the mobile home as part of the collateral & the loan is going to be secured by the mobile home, it is HMDA reportable. If the mobile home is not being taken as collateral, it is not a HMDA loan. I hope this helps.

[pcorder]

I guess my question is regarding the mobile home “being taken as collateral”.

I was thinking Valerie mentioned they weren’t placing a lien on the mobile home. If the MH is part of the collateral, shouldn’t there by some type of lien, and mentioned in the security instrument (and some type of appraisal)? That’s really what I’m confused about. I was just trying to get all the facts. lol

Thanks!

[jholzknecht]

Thanks to all of you for submitting the question and for the thorough analysis.

I suspect that the mobile home was taken as collateral (security agreement) but the security interest was never perfected (UCC-1 or mortgage). A loan secured by a dwelling is HMDA reportable, whether the security interest is perfected or not.

Valerie – Can you confirm my suspicion?

[rcoloreo]

Hello, trying to obtain clarification on property type code for HMDA purposes. We have a 2 unit that contains a finished basement kitchenette, bedroom, bath and living room which is below grade. For HMDA purposes, is this to be considered a 3 unit?

[jholzknecht]

Section 1003.4(a)(31) requires a covered institution to report the total number of individual dwelling units related to the property securing the covered loan.

The regulation does not define “unit.” There is no discussion of whether below grade units are counted or not. Apparently, someone defined the property to you as a “2 unit.” The Official Interpretations state, “A financial institution may rely on the best information readily available to the financial institution at the time final action is taken and on the financial institution’s own procedures in reporting the information required by § 1003.4(a)(31). Information readily available could include, for example, information provided by an applicant that the financial institution reasonably believes, information contained in a property valuation or inspection, or information obtained from public records.” I would go with “2 unit” unless the applicant or an appraiser defines it as a “three unit.”

[Author]

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