How does a non-HMDA reporter who is collecting government monitoring per Regulation B determine if the credit will be “primarily” for the refinancing of a dwelling? For example, if an applicant is paying off an existing lien on their principal dwelling and obtaining additional cash out, does the mere fact that they are paying off an existing lien mean the credit is used “primarily” for refinancing, or is there some sort of criteria I should be using to determine the primary purpose? I have been told you need to look at the percentage of the proceeds being used to pay off the existing lien and if it is 50% or less, then it is not a “refinancing” under Regulation B and the application is not subject to the information-collection requirements. I cannot find anything in Regulation B to justify this calculation.

Anybody?

Sorry....we're a HMDA reporter, so we would gather based on requirements of Reg C.

Amos, right or wrong we use 50% as a guide.....No issues over the last 10 years.

Before HMDA, I used a general definition of Purchase or refi of original purchase money and didn't use a %. Never had an issue.