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#1379207 - 04/22/10 03:41 PM Using Equity of Rental to Finish Constructing Home
Sheldon Hendrix Offline
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Sheldon Hendrix
Joined: Jun 2006
Posts: 1,194
South
If the purpose of loan is to borrow against equity of rental home to finish the construction of a customer's principal dwelling, is this HMDA reportable as a purchase?

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#1380545 - 04/23/10 04:46 PM Re: Using Equity of Rental to Finish Constructing Home Sheldon Hendrix
Mrs. Rizzo Offline
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Mrs. Rizzo
Joined: Mar 2006
Posts: 10,392
Curled up by the fire...
Is it going to be paid off with permanent financing?
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#1381373 - 04/26/10 03:36 PM Re: Using Equity of Rental to Finish Constructing Home Mrs. Rizzo
Sheldon Hendrix Offline
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Sheldon Hendrix
Joined: Jun 2006
Posts: 1,194
South
No, it's a 90 day note. He is planning on paying off completely at the end of the term.

I think it's a purchase. Secured by a lien to construct a dwelling, and nothing is temporary just short term.

Still awaiting answer from FRB HMDAHELP.

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#1388933 - 05/11/10 02:02 PM Re: Using Equity of Rental to Finish Constructing Home Sheldon Hendrix
Carolyn31 Offline
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Joined: Nov 2005
Posts: 101
Nebraska
What property do you report on the second loan? The property being used for security or the property being purchased?

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#1388946 - 05/11/10 02:19 PM Re: Using Equity of Rental to Finish Constructing Home Carolyn31
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hmdagal
Joined: Dec 2002
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The collateral property.

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#1389092 - 05/11/10 04:33 PM Re: Using Equity of Rental to Finish Constructing Home hmdagal
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Quote:
I think it's a purchase. Secured by a lien to construct a dwelling, and nothing is temporary just short term.


I agree.
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The opinions expressed are mine and they are not to be taken as legal advice.

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