Is it ok to collect GMI on an application for a home purchase that is being classifed as a bridge loan (temporary financing)? Reg B says collect on home purchase and refinancing and Reg C says do not report on temporary loans. Is it an error to collect even if we do not report? Thanks!

These are 2 separate collection requirements. Reg B defers to Reg C if the loan is subject to Reg C. If the loan is not subject to Reg C then you must collect the GMI under the provisions of Reg B.

If the loan is for the purchase, or refinancing of the consumer's primary dwelling and secured by that dwelling then you must collect GMI under Reg B. Reg B does not exempt temporary loans with the exception of construction only loans.

Thank you for your help. I went back and found what you were saying in the Reg B and C Offical Staff Interpretations.