[vickieg]

We have a customer that is purchasing a small mobile home park and that is the collateral, the land. There are 4 mobile homes but they are not part of the purchase and aren’t securing the loan. There aren’t any other buildings on the property. In my research I am finding that it is HMDA reportable and that it isn’t HMDA reportable. Is this reportable or not.

Topic

[rcooper]

A financial institution shall collect data regarding applications for, and originations and purchases of, home purchase loans, home improvement loans, and refinancings for each calendar year. Based on your comments about the loan it does not qualify as a home purchase, home improvement, or refinancing as defined below under HMDA and as a result would not be reportable.

Home improvement loan means:
(1) A loan secured by a lien on a dwelling that is for the purpose, in whole or in part, of repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which it is located; and
(2) A non-dwelling secured loan that is for the purpose, in whole or in part, of repairing, rehabilitating, remodeling, or improving a dwelling or the real property on which it is located, and that is classified by the financial institution as a home improvement loan.

Home purchase loan means a loan secured by and made for the purpose of purchasing a dwelling.

Refinancing means a new obligation that satisfies and replaces an existing obligation by the same borrower, in which:
(1) For coverage purposes, the existing obligation is a home purchase loan (as determined by the lender, for example, by reference to available documents; or as stated by the applicant), and both the existing obligation and the new obligation are secured by first liens on dwellings; and
(2) For reporting purposes, both the existing obligation and the new obligation are secured by liens on dwellings.

[kowsley]

Currently, the transaction would not be covered by HMDA because you are just taking the land as collateral which falls into an exemption for vacant land.

However, under the new HMDA requirements effective 1/1/2018, a manufactured home community will be considered a dwelling and would be a reportable transaction, even if individual units are not being taken as collateral:

2(f) Dwelling:

2. Multifamily residential structures and communities. A dwelling also includes a multifamily residential structure or community such as an apartment, condominium, cooperative building or complex, or a manufactured home community. A loan related to a manufactured home community is secured by a dwelling for purposes of § 1003.2(f) even if it is not secured by any individual manufactured homes, but only by the land that constitutes the manufactured home community including sites for manufactured homes. However, a loan related to a multifamily residential structure or community that is not a manufactured home community is not secured by a dwelling for purposes of § 1003.2(f) if it is not secured by any individual dwelling units and is, for example, instead secured only by property that only includes common areas, or is secured only by an assignment of rents or dues.

[Author]

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