If you refinance a home improvement loan (Original loan to improve A but secured by B), what property location do you use on the LAR for the refinance?

In GIR page D-11 it has home improvement/refinance of home improvement and Home purchase/refinance of home purchase. So does that property (A in my example) carry through all HMDA reporting until the debt in extinguished? The inclusion of refinance is this section is throwing me off.

Thanks.

We would report that as a refinancing, not a HI loan. Therefore we would report the property securing the refinancing.

From the regulation 203.4:

§203.4: Compilation of loan data (01/01/04)

(a) Data format and itemization. A financial institution shall collect data regarding applications for, and originations and purchases of, home purchase loans, home improvement loans, and refinancings for each calendar year. . . .

Prior to 2004 the section read as follows:

(a) Data format and itemization. A financial institution shall collect data regarding applications for, and originations and purchases of, home purchase loans, home improvement loans, (including refinancings of both) for each calendar year. . . .


The Commentary has not been updated to reflect the change in the wording which came about due to the change in the definition of a refinancing.

Oh Dan, I still don't quite get the refi thing. I could be wrong but I thought it had to be a refinance of purchase money or home improvement money to qualify for HMDA.

We have a loan whereby we are refiancing a debt consolidation loan. This new loan is secured by the house. But it is a refi of the old consolidation loan.

Do we file on this one?

If the new loan is secured by a dwelling and is satisfying and replacing a loan secured by a dwelling, you have a reportable refinance.

Thanks.

I've never really been as involved in HMDA as I am of late. Has it always been this way? Or do the regulatory snippets that Dan posted show that this changed in 2004?

There have been changes -- some good (I guess) some not so good. Just wait till you get to one that used to be temporary financing and now it's not.

If you haven't read up on temp finan, you need to; spash and dash is out the door.

The definition of refi that #12 quoted is the rule to live by. You don't care what the money was used for last time. You just need to replace a dwelling secured loan with another dwelling loan to have a refi.

There are two refinancing definitions in the current regulation, which was changed in 2004.

202.3(k)(1) is the "coverage" definition. This definition determines if your financial institution would be covered under Reg C.

If you are covered under (k)(1), then (k)(2) gives you the "reporting" definition of a refinancing.


The loan you mention above would be a reportable refinancing.


If you haven't got a link to the GIR then you need to add the following link. The GIR will be a great help and you should become familiar with it if you are going to deal with HMDA.

http://www.ffiec.gov/hmda/guide.htm