Contract for Deed – Refinance or Purchase?
Answer by Dan Persfull and David Dickinson, BOL Gurus Guru Bio
Question: If a client wants to payoff a contract for deed, is this considered a refinance or a purchase?
Answer by Dan Persfull: We consider them refinances.
Answer by David Dickinson: As Dan implies, you have a choice. HMDA reporting doesn't care which you choose, but you should be consistent. I prefer treating them as a refinance as well, since it "looks and smells" like a refinance in other regulations as well (RofR applies, for instance). However, you do need to provide a HUD-1 since there is a title transfer involved (which correlates with a purchase).
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