Loan at Bank A is paid off by 2 loans from Bank B. Loan at Bank A was secured by business assets and borrower's residence.

Bank B Loan #1 amounts to 60% of the Bank A loan and is secured by borrower's business assets. Bank B Loan #2 amounts to 40% of the Bank A loan and is secured by borrower's residence.

Even though Bank B Loan #2 did not, by itself, satisfy and replace the existing obligation by the same borrower, is it HMDA reportable?

Not understanding your 60/40 split. How do you determine which of Bank B's loans paid off which part of the existing debt?
Both of Bank B's loans paid off one loan that was secured by a residence, correct?
Both are HMDA reportable as refinances, imho.

I'd agree TR, except that only one of Bank B's is dwelling-secured. I think that one is HMDA reportable. The loan that is secured by business assets wouldn't be. I'm guessing you did some speed-reading that i'm often guilty of and didn't see that part.

I would view it that the loan secured by business assets paid off 60% of the original loan. The loan secured by the residence then paid off the remaining 40% and is HMDA reportable.

Thank you so much. Hadn't run across this situation before but was leaning toward reporting the residence secured loan. Split was based on $ amount of each loan - business asset secured loan was about 60% of the total amount of the refinanced loan; residence secured loan was about 40%.

Just for the record; even if 95% of the loan was paid off by the business asset-secured loan and 5% by the dwelling-secured loan, IMO the dwelling-secured loan would still be reportable.

well that will teach me to try to answer when I have a migraine!
I concur with raitchjay. Report the dwelling secured loan that pays off and replaces the dwelling secured (and business)loan as a refi for HMDA.

We have a similar situation. We are refinancing a residence with two separate loans. However, our situation is both loans are secured by that dwelling, but the first loan is not completely extinguishing the original loan. Our second loan is finishing the payoff and completely extinguishing the original. My opinion is that the first loan of the refi is not HMDA reportable, but the second one is reportable.

Thoughts, please?

If two-dwelling secured loans together extinguish one-dwelling secured loan, then both loans are reportable as refinances IMO. There have been numerous discussions on this (if i could find them and link them, i would). I'd look at it the same way i would a piggyback 80/20 purchase where both are reportable.

ditto raitchjay again on all counts.

The discussions he refers to are actually what I based my original post above on.

I guess I look at loan one as a pay down. If we were only doing one loan to pay down a portion of a loan we wouldn't report as HMDA so why would/should we report loan one in this situation?

Maybe I'm making too big a deal out of this, but want to be consistent.

But how do you decide which loan only paid it down and which one paid it off? If you are closing two loans simultaneously that together pay off one loan (and all are dwelling-secured), then again, i'd equate it to an 80/20 piggyback purchase loan. In that scenario, the 80% loan doesn't buy the home by itself, nor does the 20% loan. But both get reported as purchases. For that matter, a normal 80% purchase loan doesn't buy a home by itself either; it along with the downpayment does. It doesn't matter (again, IMO) that a loan needs help to accomplish the purchase or refinance.

As I look at the collateral, we had to take additional collateral in the form of business assets in order to finalize the refinance because there was not enough equity to do the whole payoff with just the residence on the first loan.

My big concern is will we be in trouble if we do not report the first loan when we know the first loan would not have been sufficient enough to make the full payoff.

I guess I'm following on the notion of "Does the new loan extinguish the the old" and the answer in this situation is "no, our first loan does not extinguish the old loan".

Is the old dwelling-secured loan now extinguished? Are both of your loans dwelling-secured? Did both new loans pay down (and together, pay off) the old dwelling-secured loan? If the answer to all of these is yes, then you have 2 reportable refinances.