OK, I have a request to refinance a sfr (rental property currently owned free and clear). The purpose of the loan is to purchase a 4 plex rental. The term of the loan is 24 months with 15 yr. amortization, with the intent to refinance the loan (using the 4plex) during this time (24 month period) to pay off this request... so 2 questions,

Is this temporary financing- therefore not HMDA reportable?

Does the fact the proceeds are to purchase another 4plex make this answer different?

thanks for your help!

Since you have a two year loan that is amortizing I would say it's not a temporary loan. I believe you have a purchase loan and you will geocode the rental property being used as collateral.

BTW - you can't refinance (per HMDA) a loan that doesn't have a loan. It doesn't meet the definition of refinance.

I agree. This is not temporary financing and it meets the definition of a home purchase. You report the property securing the loan for home purchases.

I know there will be some resistance to reporting, is there specific guidance on this? Thank you!

Try this FAQ: "When is a loan 'temporary financing' such that it is exempt from reporting? Answer: The regulation lists as examples of temporary financing construction loans and bridge loans... Construction and bridge loans are illustrative, not exclusive , examples of temporary financing. The examples indicate that financing is temporary if it is designed to be replaced by permanent financing of a much longer term. A loan is not temporary financing merely because its term is short. For example, a lender may make a loan with a 1-year term to enable an investor to purchase a home, renovate it, and re-sell it before the term expires. Such a loan must be reported as a home purchase loan...

The definition of a home purchase in ANY loan secured by a dwelling for the purpose of purchasing a dwelling. Further guidance informs you that you report the dwelling securing the loan if the dwelling being purchased is not part of the security.

As for a temporary loan - if you have a 24 month P&I balloon loan how does that equate to temporary financing?

You may find the following helpful:

http://www.bankerscompliance.com/assets/files/articles/HMDA%20and%20Temporary%20Financing.pdf

Dan,
The borrower intends to pay-off our loan by taking out long term financing sometime during the 24 month period..using the 4plex as collateral. Is this not temporary? (one loan to be paid off by long term financing)

A balloon loan with scheduled P&I payments is not temporary financing. That's a short term loan. Search the threads and you will find plenty of discussion on the issue.