When an open end loan is maturing and the bank does a new closed-end loan, is saying in the new note "Prior note- renewal of existing note #123" and that's it...nothing else (i.e., continuing validity of prior note, or prior note remains in force, all other terms remain, etc.) enough to warrant calling it a renewal rather than a refinance for HMDA purposes?

Sounds like a refinance to me.

Thoughts?

Regardless how it's accomplished converting an open-end credit to a closed-end credit is a refinancing and all applicable closed-end disclosures must be provided.

Stop and think - if you were renewing an open-end note wouldn't it still be an open-end note?

I agree that all applicable closed-end disclosures must be provided, but for HMDA purposes...if they say "this is a renewal of note #12345" and that note happened to be a HELOC, will that fly for HMDA purposes and the bank would be okay to NOT report it?

It doesn't matter what they call it or if they refer to the open-end agreement. If they refer to the open-end agreement continuing then they have to continue to treat it as an open-end credit and provide the periodic statements and comply with all other requirements for open-end credit.

As I said earlier, regardless how it's accomplished converting open-end credit to closed-end credit is a refinancing. The new closed-end credit obligation satisfies and replaces the open-end credit obligation.

I agree...I think it's a refinance and is HMDA reportable.

^^^For HMDA, reportable as a refi. Dwelling secured loan replaces a dwelling secured loan.

Except, was your open end note a construction loan? Did you build from the ground up? If so, your new note is a Purchase for HMDA. (Not to be confused with being a refi to the investor.)