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#1698914 - 05/11/12 08:05 PM Is this a HMDA reportable refinance?
Hunker Offline
Junior Member
Joined: Mar 2010
Posts: 26
I have a customer who wanted a home equity loan to puchase a tractor. I explained the process and timeline and they wanted to purchase the tractor sooner than I could fund the loan. They have a home equity line of credit that they recently paid the balance down to zero, so I suggested they advance on the HELOC to aquire the tractor. They eventually want a fixed rate/fixed payment on the tractor loan (secured by their home) and wanted to have the HELOC available for other uses, so I told them we will now do a home equity installment loan for them and pay the HELOC balance back down to zero and leave it open. If we are paying down a HELOC to zero with a home equity installment loan(both secured with the borrower's home), but leaving it open, is this a refinance for HMDA purposes?

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#1699026 - 05/13/12 04:42 PM Re: Is this a HMDA reportable refinance? Hunker
rlcarey Online
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Joined: Jul 2001
Posts: 78,929
Galveston, TX
No. It does not meet the difinition: "satisfies and replaces an existing obligation by the same borrower". The HELOC obligation remains.
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