Learn More - Click Here!

New Reply Thread Options
#1507947 - 02/10/11 03:11 PM 2 HMDA Questions
Anonymous
Unregistered

1. Are BOTH purchases and refinances of 1-4 family residences that are located on 25 or more acres exempt from HMDA reporting?
2. Is a refinance HMDA reportable whether the new lien is a first or a second lien?

Return to Top Reply Quote Quick Reply Quick Quote
#1507972 - 02/10/11 03:29 PM Re: 2 HMDA Questions Anonymous
KerryG Offline
100 Club
Joined: Dec 2006
Posts: 105
WI
1) Acreage only pertains to Reg Z & RESPA; it has no bearing on HMDA.

2) If the new lien is "new money" and not existing debt secured by a dwelling (not necessarily the same dwelling), it is not HMDA reportable. To illustrate, Mr. Customer has a first lien on his home for $100,000. He just obtained a second lien on the home for $15,000. The second lien would not be reportable (because no dwelling secured debt was refinanced, the $15,000 is new debt). However the $15,000 second lien would be HMDA reportable if the funds are being used for home improvements to be made.
_________________________
I'm not a lawyer and I don't play one on TV. My opinion is my own and does not constitute legal advice.

Return to Top Reply Quote Quick Reply Quick Quote
#1507984 - 02/10/11 03:37 PM Re: 2 HMDA Questions Anonymous
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
Originally Posted By: Anonymous
1. Are BOTH purchases and refinances of 1-4 family residences that are located on 25 or more acres exempt from HMDA reporting?
2. Is a refinance HMDA reportable whether the new lien is a first or a second lien?


Your new lien can be reportable if you are paying off a loan at another financial institution that was to same borrower and also secured by residential real estate. That would be a refinance.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top Reply Quote Quick Reply Quick Quote
#1508087 - 02/10/11 05:13 PM Re: 2 HMDA Questions Kathleen O. Blanchard
Island Dreaming Offline
100 Club
Joined: May 2009
Posts: 215
midwest
In regards to the acreage question - from the Getting it Right guide:

Farm loan. A loan to purchase property used primarily for agricultural purposes is not a home purchase loan even if the property includes a dwelling. An institution may use any reasonable standard to determine the primary use of the property, such as by reference to the exemption from Regulation X (Real Estate Settlement Procedures, 24 CFR 3500.5(b)(1)) for a loan on property of 25 acres or more. An institution may select the standard to apply on a case-by-case basis.

Hope this helps!

Return to Top Reply Quote Quick Reply Quick Quote
Quick Reply:
HTML is disabled
UBBCode is enabled




Moderator:  MagicCity, P*Q, Truffle Royale