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.

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.