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#1375804 - 04/16/10 08:23 PM Purchase or Refi?
#12 Offline
Diamond Poster
Joined: Jun 2005
Posts: 1,338
My 2nd HMDA question in 2 days!

Dad and Daughter A purchased a rental house together, which the bank financed. Daughter A sold Daughter B her share of the property. The bank did a new loan (which refinanced the original purchase loan) to Dad and Daughter B.

So is it a refi, dwelling secured loan satisfying and replacing a dwelling secured loan to the same borrower (Dad), or a purchase since Daughter B is buying half from Daughter A? I know purchase trumps refi, but this one is a little different for me.

Thoughts?
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#1375877 - 04/16/10 09:13 PM Re: Purchase or Refi? #12
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,765
Bloomington, IN
The new loan is a mixed purpose loan and as you said purchase trumps refi.
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The opinions expressed are mine and they are not to be taken as legal advice.

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