Skip to content
BOL Conferences Top Gun 23
Thread Options
#1661831 - 02/08/12 01:40 AM HMDA Const/Perm Home Improvement vs Purchase
yy2say Offline
Gold Star
yy2say
Joined: Apr 2002
Posts: 279
PA
If a new home is constructed on a piece of property already owned by the borrower is the HMDA reportable loan considered Home Purchase or Home Improvement?
_________________________
"Go, Dog. Go!" ~ P.D. Eastman

Return to Top
HMDA

   
HMDA Academy
#1661838 - 02/08/12 03:45 AM Re: HMDA Const/Perm Home Improvement vs Purchase yy2say
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,292
It would be a purchase.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1661866 - 02/08/12 01:29 PM Re: HMDA Const/Perm Home Improvement vs Purchase yy2say
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,025
Bloomington, IN
Agreed. If no dwelling currently exists on the property then there can be no improvements made to a dwelling or the property on which a dwelling is located. Therefore it would not meet the definition of a home improvement loan.

Constructing a home is purchasing the home. You may be purchasing it one section at a time but you are still purchasing it. The loan (const/perm) is secured by the dwelling being constructed therefore it meets the definition of a home purchase.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top

Moderator:  SMQ, CRCM