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#1813104 - 05/10/13 03:23 PM Booked as Construction, But Funds for Purchase
manimal Offline
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manimal
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I scoured the HMDA threads as best as I could, so I don't think this particular question has been asked.

We have a loan to aquire multiple townhomes and finish constructing two of them. The loan was booked as a construction loan, but 75% of the funds are being used for the acquisitions.

Does the percentage of funds being used towards the purchase make this a HMDA reportable loan, even though the loan was booked as a (3-yr) construction loan? There are no plans for permanent financing, the owner plans to sell the townhomes.

Thanks in advance for your thoughts. smile
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#1813112 - 05/10/13 03:30 PM Re: Booked as Construction, But Funds for Purchase manimal
RR Joker Offline
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If it's truly to complete the intial construction, I think it actually would still be a CL at this point. However, due to the term being so long {and no take out expected}, I believe I would handle it as a purchase. Interesting sitch!

Last edited by RR Joker; 05/10/13 03:31 PM.
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#1813202 - 05/10/13 04:48 PM Re: Booked as Construction, But Funds for Purchase manimal
#Just Jay Offline
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Agreed.
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#1813205 - 05/10/13 04:49 PM Re: Booked as Construction, But Funds for Purchase manimal
manimal Offline
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UGH. Guess it's time to revamp my reports in case more of these happen in the future. I wasn't even pulling construction loan codes prior to this.

Stupid commercial loans and their 'creative financing'. mad
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#1813235 - 05/10/13 05:25 PM Re: Booked as Construction, But Funds for Purchase manimal
#Just Jay Offline
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Word.
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