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#1711193 - 06/16/12 04:14 PM Collecting GMI on Refinance
pat robbins Offline
Member
Joined: Jun 2007
Posts: 87
Oklahoma
We have an application to refinance a primary residence for the purpose to pay off credit cards and other debts. I don't think we should collect government monitoring information. Is this correct or am I way off base here? If it makes a difference we are not a HMDA reporting bank.
Last edited by pat robbins; 06/16/12 04:17 PM.
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#1711194 - 06/16/12 04:40 PM Re: Collecting GMI on Refinance pat robbins
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,281
A non-HMDA reporter would follow Reg B, which requires collection of the data specified in Reg B for refi of primary residence for any purpose:

(a) Information to be requested. (1) A creditor that receives an application for credit primarily for the purchase or refinancing of a dwelling occupied or to be occupied by the applicant as a principal residence, where the extension of credit will be secured by the dwelling, shall request as part of the application the following information regarding the applicant(s)

http://www.bankersonline.com/regs/12-1002/12-1002-013.html
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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#1711501 - 06/18/12 09:53 PM Re: Collecting GMI on Refinance pat robbins
Eldon96 Offline
Member
Joined: Apr 2011
Posts: 70
We actually had this clarified for us by examiners, and on this exact scenario. They honed in on the word "primarily" and said that if the primary purpose was paying off credit cards (buying a new car, boat, etc.) then GMI was NOT required and if it's there, expect a violation. The commentary supports this.

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#1711602 - 06/19/12 01:47 PM Re: Collecting GMI on Refinance Eldon96
rachelchri Offline
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Joined: Aug 2010
Posts: 165
Originally Posted By: Eldon96
The commentary supports this.


Eldon96 is correct.

The commentary for 212.13 states:

"Transactions not covered. The information colletion requirements of this section apply to applications for credit primarily for the purchase or refinancing of a dwelling that is or will become the applicant's principal residence. Therefore, applications for credit secured by the applicant's principal residence but made primarily for a purpose other than the purchase or refinancing of the principal residence (such as loans for home improvement and debt consolidation) are not subject to the information-collection requirements..."

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#1712713 - 06/21/12 02:17 PM Re: Collecting GMI on Refinance pat robbins
pat robbins Offline
Member
Joined: Jun 2007
Posts: 87
Oklahoma
Thanks so much for your help.

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