We originated a mortgage loan for a couple whose parents actually currently own the subject property free and clear. The parents will be co-borrowers on this loan and the loan proceeds will actually be given to the parents as a reimbursement for the property. The title will be transferred to the son and daughter-in-law at closing. I don't think this would be a refi because we aren't paying off a lien on a dwelling. Do you think this should be reported as a purchase or just not reported at all? This loan was entered in the mortgage software as a refi which I really don't believe it is for HMDA purposes.

Sounds to me like you have a purchase transaction with the parents as co-signers/borrowers.

Thanks!