HMDA & Business-Purpose Home Equity

A HMDA reportable loan is one that is dwelling secured and is made for the purpose of purchasing a dwelling, refinancing a dwelling, improving a dwelling, or “other” purposes (aka home equity). But, “Other” only includes consumer-purpose home equity loans. Business purpose home equity loans are not HMDA reportable.

David explains more in the video.

Video Highlights:

• An example of a business-purpose, home equity loan is when an individual uses their home as collateral for a loan to make payroll for their business.
• Business purpose, home equity loans are not HMDA reportable initially but could be if later refinanced.

Published
2023/06/16