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# When HMDA Applies is selected on the Loan Definition page, why does Business or Commercial Purpose display?

On the Loan Definition page in the HMDA section, Business or Commercial Purpose is used to report the loan with a business or commercial purpose to HMDA and displays unselected by default. The Business or Commercial Purpose selection is strictly for HMDA reporting purposes, and the transaction will be treated as a consumer purpose loan for all other purposes. If selected, '1= Primarily for a business or commercial purpose' is reported to HMDA

Previously, the Business or Commercial Purpose was set automatically to '2 = Not primarily for a business or commercial purpose' for all transactions subjected to HMDA. This will continue to be the default for all transactions, but can be set up differently in a template.