We are a National Bank not subject to Reg C (HMDA). When we receive an application to refinance home for the purpose of debt consolidation, we do not have to collect the GMI, correct?

Also, would it be considered a violation if we do?

Under Reg B, you collect if it's for the purchase, or refinance of purchase money only. So, if you HI includes paying off purchase money - yes. Otherwise, no.


ETA: Missed the last question. Yes.

I am thinking it is not a violation if you are collecting as allowed under Reg B. even though you currently do not do HMDA reporting. I am assuming you are in a rural area?

Yes, we are in a rural area. So, just to be clear:

Purchase Money Transaction (Home secured ) - Yes
Refinance of Home purchase (no new cash) - yes
Refinance to payoff Credit Cards - Big No No.
Refinance for Home Improvements - Big No No.

That is correct! Only purchase and refi of purchase.

Thanks Guys!!

On number 2...it could be cash or no cash out (which would also apply to paying off bills/making improvements). They key is...are you paying off original purchase money with the new loan.