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#1740259 - 09/12/12 06:12 PM Down Payment Loan on House HMDA Reportable?
gunches Offline
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We did a loan to a father, secured by his rental property, purpose was for the down payment on his son's house. Is this HMDA reportable?

Also did a loan for a down payment on a house, secured by vehicles. Is this HMDA reportable??

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#1740276 - 09/12/12 06:32 PM Re: Down Payment Loan on House HMDA Reportable? gunches
raitchjay Offline
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Scenario 1: If only the son's name will be on the title to the house, not reportable (purpose of loan sounds like to gift the son).

Scenario 2: Not reportable as home purchase loans have to be dwelling-secured to be reportable.
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#1740285 - 09/12/12 06:50 PM Re: Down Payment Loan on House HMDA Reportable? gunches
Sunshine_101 Offline
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I think scenario 1 is reportable. Simplified version of scenario 1; purpose: purchase a dwelling secured by a dwelling.

Scenario 2 - Agree with raitchjay.
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#1740290 - 09/12/12 06:56 PM Re: Down Payment Loan on House HMDA Reportable? gunches
raitchjay Offline
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If i get a loan to buy my son a house, the purpose IMO is for me to give a gift to my son, not purchase a house, as at the end of the transaction, i don't own a new house.
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#1740294 - 09/12/12 06:58 PM Re: Down Payment Loan on House HMDA Reportable? gunches
Kathleen O. Blanchard Offline

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If the father will not be an owner of the home being purchased, I would treat his loan as a gift to his son not a home purchase.
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#1740299 - 09/12/12 07:00 PM Re: Down Payment Loan on House HMDA Reportable? gunches
Dan Persfull Offline
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Scenario 1: I agree with raitchjay.

If the father is not a party to the purchase transaction then the money he borrowed is a gift to his son, not to purchase a dwelling. How the son uses the gift has no bearing on the purpose of the father's loan.

You have to look at what your borrower is using the loan proceeds for and in this case the father is using them to give to his son.
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#1740301 - 09/12/12 07:03 PM Re: Down Payment Loan on House HMDA Reportable? gunches
Sunshine_101 Offline
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Thank you for the clarification. I also wonder about these types of loans. I am glad we have bankersonline to get others explanations and opinions. smile
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