If the loan is for a home improvement, home purchase, or refinance, then that loan will be considered reportable. Let's talk about HMDA and home improvement loans. When it comes to home improvement, any type of real estate improvement is what the HMDA calls a home improvement loan. If it's a one to four family home, I don't care what you're improving as long as it's not personal property.
Real estate such as underground sprinklers, landscaping, maybe a separate garage. The regulations even give an example of a doctor who is going to add a wing to his home so that the doctor can practice medicine from home, or maybe I, as a bank consultant, want to make improvements. It may not be a consumer loan for Reg Z, but the HMDA says it is a home improvement loan. We started by analyzing the role of the board of directors and management, provided a brief overview of the requirements of the law, and ended up reviewing sound practices to improve compliance.
Because consumer home equity loans can now serve other purposes and still be covered, the purpose field was modified to add a new option “or for a purpose other than home purchase, home improvement, refinancing, or cash-out refinancing. For example, prequalifications are not reported, while applications for a home purchase loan in pre-approval programs are. It seems that the gist of the question is this: Is a loan to buy and place a shed on a property where there is a home considered a home improvement loan under the HMDA? The Mortgage Disclosure Act (HMDA), implemented by Regulation C, required1 that financial institutions subject to the Act and Regulation (HMDA reporters) collect and report certain fields of data on applications, originations and purchases of “covered loans”. Because of these factors, some banks have found that developing staff with specialized HMDA competence improves HMDA compliance.
If you're making improvements to the entire facility, in other words, maybe a new central air, HVAC, water, something like that, then that will also be an improvement in the home because the housing part is being improved, at least in part. If you're making improvements to the housing part, it's definitely a home improvement for the HMDA. If the loan is not secured by a home and is not classified on your books as a home improvement loan, it is not reportable by the HMDA.