HMDA & Converted Properties

HMDA is all about dwellings. Specifically, dwelling-secured loans where the proceeds will be used to purchase, refinance or improve a dwelling and other consumer purposes. So, what if the loan proceeds will be used to purchase a dwelling and then convert it into a business? Or, what if the loan proceeds will be used to improve a commercial building and turn it into apartments? Are these scenarios HMDA reportable?

David explains more in the video.

Video Highlights:

• The video discusses HMDA implications when a dwelling is converted to something else and vice versa.
• If a dwelling is converted into something other than a dwelling (like a business), it’s no longer considered a dwelling and therefore not subject to HMDA regulations.
• If an existing business (non-dwelling) is converted into a dwelling, it may be subject to HMDA regulations when it is later refinanced or sold.

Published
2023/02/28