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Regulation C specifically excludes “transitory residences such as hotels, hospitals, college dormitories, and recreational vehicle parks” from the definition of dwelling. It also specifically says RVs, campers, travel trailers, and park model RVs are not dwellings.
I would not report this loan for HMDA purposes based on the facts provided in your question.
Although one of the RV parks has three rental cabins and two mobile homes used to house employees, I would not view the presence of those units as converting the RV park into a dwelling. The cabins appear to be ancillary to the RV park’s transient lodging operation, and the employee housing is associated with the operation of the park. The HMDA commentary also specifically recognizes that transitory employee housing is not a dwelling.
The mixed-use provision does not mean that the presence of any residential-type structure automatically makes a property HMDA-reportable. For a mixed-use property, the property must have a residential primary use. Here, the primary use is the operation of an RV park, which is specifically excluded as a transitory residence.
I would consider the loan not secured by a dwelling and therefore not HMDA-reportable, assuming there are no other facts indicating that the cabins or mobile homes are being used as long-term residential housing.
One thing I would add to your internal analysis: If the cabins are actually being rented as long-term housing rather than nightly/weekly/seasonal transient lodging, I would reassess and possibly change my opinion. But with what you’ve described, two RV parks, land/pads, a few cabins ancillary to the park, and staff mobile homes, this is not HMDA reportable IMO.
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I think you are understanding this correctly. Once you knew the policy was cancelled and the bank was not going to pay that premium, I do not think you should have continued to include that specific premium as an anticipated disbursement. Continuing to carry it forward would artificially increase the escrow payment and could result in a surplus, which appears to be what happened.
The fact that hazard insurance is required does not necessarily mean you should continue using the premium from the cancelled policy. You would want to base the analysis on what you reasonably expect to pay. For example, if the borrower obtains replacement coverage or the bank force-places coverage, then that anticipated premium could be included.
Based on the facts you provided, I would question the basis for continuing to include the old premium in both the 2023 and 2024 analyses if the bank did not expect to actually make that payment.
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Flood is a dwelling related loan. Which would mean if the loan is secured by two separate duplex buildings, You would need a flood determination that identifies each building securing the loan. You cannot safely use one house number and assume the result applies to the other duplex simply because both sit on the same tract.
The Interagency Flood Q&As are very clear on the underlying principle: when a loan is secured by multiple buildings, the lender must determine whether each building securing the loan is located in an SFHA. The regulation requires use of the standard determination form for the building or mobile home offered as collateral. However, based on your vendor two separate flood certificates don’t necessarily mean two completely separate orders if your vendor has a way to run both buildings in one transaction/package. But the documentation must clearly identify and provide a determination for both structures. One determination using one duplex’s house number is not sufficient documentation for the second duplex.
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Based on the information you provided. Yes, this loan is likely HMDA reportable as a home improvement purpose transaction under Regulation C (12 CFR Part 1003).
Home Improvement Definition: Under HMDA, a home improvement-purpose transaction is one where the proceeds are used to improve a dwelling or the real property on which it is located.
Reimbursement: Using loan proceeds to reimburse the business entity for past renovations on a 1-4 family dwelling qualifies as a home improvement purpose, as long as the stated intent/use of the funds ties back to improving the dwelling. The fact that the property is listed for sale does not exempt it from home improvement classification.NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
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Yes, that is correct. In 2024 and 2025 you were below threshold. You will need to monitor this every year so that you will know when your requirements change. Two consecutive years will require you to move into an ISB.
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My understanding there is only an exemption for smaller loans from Appraisals with HMPL. These dollar limits are each December based on the Consumer Price Index and effective every January. If it is a non-HPML (standard) residential real estate loans, the federal interagency appraisal rules exempt transactions of $400,000 or less from requiring a full, certified appraisal. For loans below this threshold, lenders are permitted to use an evaluation instead of an appraisal. You can find more details:
* https://www.fdic.gov/news/financial-institution-letters/2019/fil19053.html
* https://www.federalreserve.gov/frrs/guidance/interagency-appraisal-and-evaluation-guidelines.htmlNOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
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From an ATR/QM compliance perspective, I would be cautious about saying it’s “okay” simply because the omitted debts do not materially affect the DTI. This is primarily an Ability-to-Repay (ATR) issue rather than a QM issue on a TRID loan.
ATR requires the creditor to make a reasonable and good-faith determination of the consumer’s ability to repay based on verified and documented information. One of the ATR factors is the consumer’s current debt obligations, alimony, and child support. If debts appearing on the credit report should have been included under your underwriting policy or standard DTI calculation methodology, they generally should be considered in the ATR analysis.
Even as a Small Creditor, you should address this from the perspective that all applicable debt obligations must be evaluated. The question is whether excluding these small payments constitutes an exception to your underwriting requirements. If the answer is yes, I would recommend documenting the exception in the file.
In addition, I would recalculate the DTI including the omitted payments and document that the revised DTI remains within your institution’s acceptable underwriting standards. This demonstrates that the debt obligations were considered and supports the creditor’s reasonable and good-faith ATR determination.
Wow – Large/complex scenario — best approach is to break it down–
1. Under the National Flood Insurance Program (NFIP):
• Each building requires its own separate flood insurance policy
• NFIP policies are written per structure, not per property
• In this case (house, office, cabins, bathhouses, etc.), you are likely looking at multiple policies, not a single blanket policy.
• A single policy may be possible through private flood insurance, depending on the carrier.
2. Coverage limits with NFIP:
• Commercial building max: $500,000 per building
• Contents: $500,000 per building
• If your appraisal shows higher replacement values (which is common with multiple structures), NFIP may not satisfy the requirements.
3. Documentation / file setup – Build a clear structure list from the appraisal:
• Building name (Cabin #1, Bathhouse A, etc.)
• Use (residential, commercial, storage)
• Replacement cost (focus on replacement cost, not cash value, for lending)
• Square footage
• Elevation (if available)
4. RV/Campground:
• Primary buildings (office, dwellings, cabins):
o Typically must be individually insured (NFIP or private)
• Lower-value structures (sheds, pavilions):May be:
o Not required by the bank OR Covered under a private/blanket policy (if allowed)
o Under NFIP, these would still require separate policies
5. Considerations
• Do not assume: “One property = one policy” (not how flood works under NFIP)
• The bank is not limited to NFIP:
o Private flood insurance is often a better fit for this type of risk:
* Can cover multiple buildings under one policy
* Can provide higher limit policy which offer better coverage
* More flexibility for mixed-use properties• Important:
o Ensure all required structures are specifically covered or scheduled
o Apply consistent standards across borrowers to avoid compliance issuesTHIS POST DOES NOT CONSTITUTE LEGAL ADVICE
Short answer is “Yes” the disclosure is a statutory requirement, and we cannot find evidence that that requirement has been changed. The Department of Financial Institution’s website is still active and still lists the requirement.
We suggest you contact your legal team to do more research on this requirement and monitor for whether the law changes. The disclosure requirement is tied to the mortgage, not the grant program.
However, as customers may be confused, you may want to provide a script to customer service reps advising that this is occurring and we have no way of knowing when grant applications will resume, and provide the customer with appropriate links.
IMO – I would use the contract information it will be what the client has. They could have changed offices, which would account for the difference in addresses. Websites are often times not updated quickly. In a lot of cases, a LLC will use a DBA but on Professional State Pages it will list legal names.
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Yes, I do think you would have a Fair Banking issue by allowing an exception based on “large business customers” employees getting special treatment. If you were to make an exception to your Bank’s policy, you would need to make sure it was for everyone and had standards that would provide the same opportunity to all prospects equally.
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Townhomes are treated as individual SFR. If the unit you are taking is not in the Special Food Hazard Area, then the borrower would not be required by Flood rules to get flood insurance. However, as a Safety and Soundness precaution you Institution could consider requiring it to protect your collateral. If you do that you will need to make it a standard practice for consistency.
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Townhomes are treated as individual SFR. If the unit you are taking is not in the Special Food Hazard Area, then the borrower would not be required by Flood rules to get flood insurance. However, as a Safety and Soundness precaution you Institution could consider requiring it to protect your collateral. If you do that you will need to make it a standard practice for consistency.
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Anytime you obtain an appraisal in conjunction with a home transaction (ref, purchase, home improvement) you are required to provide the Appraisal Notice. You as the lender may not waive this.
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I agree with @pparks, Since the Income was collected and updated to figure a DTI. It would need to be HMDA reportable. I also agree with the need to have a policy to have consistency.
