For a construction/permanent financing we routinely do two loans & require two applications. At the onset, we obtain an URLA for the term loan and our consumer application for the bank held construction financing. (For the term loan you need GMI but for the bridge loan you can’t collect GMI.)

Requiring the consumer to provide nearly identical information twice is not what you call customer service friendly. Are the 2 applications for this type of financing pretty standard?

Hello: I'm bumping this back up as I really would like to find another way to do this! Thanks --

Suszie, we are doing the same and I just posted a quesiton about disclsoures for the two - Are you all providing two separate sets of disclsoures - one for the construction application and one set for the permanent phase application?

Yes, two sets of disclosures. The construction terms are disclosed and the second set discloses permanent financing terms.

Suzie,
I don't know of any reason you would have to use separate applications. I think the borrower could apply for both loans using the same application. In that case, I don't think the presence of GMI would be an issue.

What about HMDA - if there are two separate closings, do you wait until the perm before you report it?

Thanks GreatBlue for the input. Just one application is what I would like to be able to use.

To answer your question Anon, we consider the construction loan as a bridge loan, thus not reportable. We do, however, report the perm loan on our HMDA LAR.