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#1839541 - 08/05/13 07:59 PM Purchase vs Refi
Kari Offline
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Kari
Joined: Sep 2002
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PA
Ok, husband and wife getting a divorice. One spouse if buying out the other due to the divorce. Purchase or Refi? You would think with is simple but we are getting conflicting answers.

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#1839542 - 08/05/13 08:02 PM Re: Purchase vs Refi Kari
Skittles Online
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TN
And you will on this website also. Some banks report these as purchases and others as refinances. Either way - decide, document and make sure you treat them all the same.
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#1839543 - 08/05/13 08:02 PM Re: Purchase vs Refi Kari
manimal Offline
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This one has been talked about a lot on here, if you go to google and type in "Bankersonline HDMA divorce", you'll get a bunch of discussions on it. smile
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#1841049 - 08/09/13 02:00 PM Re: Purchase vs Refi Kari
Compliance Buzz Offline
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NJ
Kari, our bank took the procedural stance last year that we would report them as a Purchase. I spent the time to look at all the posts that you've been referred to, and I spoke to different compliance resource we have, and basically it comes down to what Skittles said: make a bank decision how ALL all buyouts (family, friend, business and spousal) will be categorized, put it in writing, and stick with it.
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#1841462 - 08/12/13 01:19 PM Re: Purchase vs Refi Compliance Buzz
Indy Banker Offline
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Originally Posted By: Compliance Buzz
Kari, our bank took the procedural stance last year that we would report them as a Purchase. I spent the time to look at all the posts that you've been referred to, and I spoke to different compliance resource we have, and basically it comes down to what Skittles said: make a bank decision how ALL all buyouts (family, friend, business and spousal) will be categorized, put it in writing, and stick with it.


Same here, we report buyout situations as a purchase. Last two examinations, the examiners said they personally won't tell the bank how to report them but will not have a problem as long as the bank is consistent.

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#1843400 - 08/16/13 09:33 PM Re: Purchase vs Refi Indy Banker
Mr. Mike Offline
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Joined: Jul 2013
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New Jersey
If they're buying out the other borrower, the lien is being satisfied, and a new app is being done for the single borrower that would be a purchase.
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#1843419 - 08/16/13 10:12 PM Re: Purchase vs Refi Kari
RockChucker, CAMS Offline
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The Country
Be consistent and document is the safe way to go. You will get different views when asking other banks.
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#1843466 - 08/18/13 02:32 AM Re: Purchase vs Refi Mr. Mike
Truffle Royale Offline

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Originally Posted By: Mr. Mike
If they're buying out the other borrower, the lien is being satisfied, and a new app is being done for the single borrower that would be a purchase.
Not necessarily which is the point of the other posts here and in numerous other threads that have been started on this topic.

We've always reported them as refinances because one borrower remains the same on both the old and the new loan.
Made it through numerous exams with that stance intact and never questioned.

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