Hello,

We are originating four loans to four different LLC's (same principals on all four) as follows:

On two of the properties (Multi-family) the borrower is paying off existing liens and taking some cash out toward a purchase. The third property is free and clear (also multi-family) so all the funds from there will go toward the same purchase. The combined cash out from all three will be used as a down payment to purchase a fourth property which we are also financing. The property being purchased is non-residential - retail property; basically offices and stores.

Do we report the free and clear property as a purchase? And which property's geocode would we use? Thank you!

If I understand all the cash out is being used to purchase a non-residential property. If that assumption is correct then:

On two of the properties (Multi-family) the borrower is paying off existing liens and taking some cash out toward a purchase.

Reportable as a refinancing.

The third property is free and clear (also multi-family) so all the funds from there will go toward the same purchase.

Assuming this is a separate loan from the one above it would not be reportable.


If all 3 properties are securing one loan then you have a reportable refinancing based on the 2 multi-family properties being refinanced.

Thank you for your response Dan!

On two of the properties (Multi-family) the borrower is paying off existing liens and taking some cash out toward a purchase

Reportable as a refinancing.

I apologize that I didn't mention this in my previous post however, we are in NYS and most of our refinances have NY CEMAS, which we do not report. The two refinances I mention DO have CEMA's therefore we would not report.

Having said that, in the event we were reporting these loans, I thought I read on D-8 that a multi-purpose loan, in this case a refinance and purchase, would be reported as a purchase. Am I reading that incorrectly?

The third property is free and clear (also multi-family) so all the funds from there will go toward the same purchase.

Assuming this is a separate loan from the one above it would not be reportable.

Why would this not be reportable? Is it because it's free and clear?

Thank you for your help. This can be very confusing.

Why would this not be reportable? Is it because it's free and clear?

You stated the property being purchased is non-residential property, IOWS not a dwelling. Only dwelling purchases that are secured by a dwelling are HMDA reportable.

Since there is no existing obligation secured by the dwelling it would not meet the definition of a refinancing, therefore not reportable.

Ofcourse, non-residential. Thank you!