Thread Options
#1633665 - 11/30/11 05:24 PM How should this be classified?
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,049
In the mountains
The original loan, originated 5 years ago, was for home improvement secured by the dwelling. The balloon is now being refinanced. Purpose on application is refinance of matured loan. There is no cash out...just straight refinance.

Is this a refi for HMDA?

If a purchase is later refi'd then it becomes a refi, right? Can that reasoning be applied to home improvement loans? It might begin as home improvement but if refinanced later is now a refi.

Thank you in advance!
_________________________
Always learning something new...

Return to Top
HMDA

   
HMDA Academy
#1633688 - 11/30/11 05:39 PM Re: How should this be classified? Likes to Comply
#12 Offline
Diamond Poster
Joined: Jun 2005
Posts: 1,338
It is a refinance...you are satisfying and replacing a dwelling secured loan with a new dwelling secured loan.
_________________________
CRCM

Return to Top
#1634209 - 12/01/11 05:07 PM Re: How should this be classified? #12
Love Cruising Offline
100 Club
Joined: Mar 2009
Posts: 248
If you have a loan "cash out" property is free and clear, and the funds will be used to purchase furniture, is it HMDA reportable would it be considered a "home improvement" if it's to purchase furniture?

Return to Top
#1634213 - 12/01/11 05:11 PM Re: How should this be classified? Love Cruising
raitchjay Offline
Power Poster
Joined: Oct 2009
Posts: 8,668
OK
No. Furniture isn't attached to the house and won't necessarily "travel" with the home if it changed hands, much like i wouldn't consider buying a refrigerator as home improvement for HMDA purposes.
_________________________
I'm fixin' to fix that.

Return to Top
#1634244 - 12/01/11 05:41 PM Re: How should this be classified? raitchjay
Love Cruising Offline
100 Club
Joined: Mar 2009
Posts: 248
Thank you, I did not include it in my HMDA but wanted to double check to be sure.

Return to Top
#1634301 - 12/01/11 06:38 PM Re: How should this be classified? Love Cruising
Adam Witmer Offline
Power Poster
Joined: Sep 2010
Posts: 2,612
For what it's worth, I agree with RJ.
_________________________
Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

Return to Top

Moderator:  SMQ, CRCM