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#1140238 - 03/05/09 01:04 AM construction loan renewed to longer term-HMDA?
Chocaholic Offline
Gold Star
Joined: Aug 2005
Posts: 443
Northwest
We have several spec construction loans that have not sold. The contractors have requested we term out the loan so they have an opportunity to sell them or lease them to sell and if they qualify we have done as follows: we left the original Deed of Trust in place, renewed the original note with changed terms, so the borrowers must now make P & I payments 30 year amortization, but a balloon in 3 years..
Is this HMDA?
If yes, a refi? or? Any help please!

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#1140248 - 03/05/09 01:44 AM Re: construction loan renewed to longer term-HMDA? Chocaholic
Mrs. Rizzo Offline
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Mrs. Rizzo
Joined: Mar 2006
Posts: 10,392
Curled up by the fire...
There's been a few threads about the same thing. Most have decided to report these as purchases.
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#1140249 - 03/05/09 01:48 AM Re: construction loan renewed to longer term-HMDA? Mrs. Rizzo
Mrs. Rizzo Offline
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Mrs. Rizzo
Joined: Mar 2006
Posts: 10,392
Curled up by the fire...
Here's an example:
http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1105581&Searchpage=5&Main=125698&Words=term+out+spec+construction&Search=true#Post1105581
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#1140747 - 03/05/09 06:20 PM Re: construction loan renewed to longer term-HMDA? Mrs. Rizzo
ML Offline
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Joined: Apr 2004
Posts: 220
We did the same thing with some of our construction loans. If there was a new note, we reported it as a purchase. If it was just a modification of terms, we did not report it.

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