I don't mean to disagree, I am just responding out of curiosity and to make sure I am reporting correctly.
I think you could make an argument to support either stance. I think in this case if the application stated that the purpose of the funds was to purchase another SFR, we would code it as a purchase. Even if they state it is temporary, they are still taking a mortgage out on their property for the purchase of a home. (purpose = home purchase, collateral = dweliing)
What if the daughter's funding falls through and the loan is not paid off for a couple of years? I agree with KB that we need more info to make a determination, but based on the limited information I think we would report this loan as a purchase.
We have business customers whose model is to take equity out of a home to purchase another SFR to rehab/flip them. They might stay on the books 6 months to 2 years but we code them as HMDA purchases as both properties are SFRs and the purpose is to purchase an SFR. We have been told by our regulators that these must be coded as purchases and reported under HMDA, even though the borrower pays the loan off within a short period of time.
_________________________
The opinions expressed are mine, do not represent the opinions of my employer, and they are not to be taken as legal advice.