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#1973952 - 11/04/14 03:39 PM Cash out 1 to Purchase another
ComplianceNerd Offline
Gold Star
Joined: Nov 2011
Posts: 378
Texas ...
How do you report this loan to HMDA?

There are two dwellings, one is being cashed out (there is not a loan or lien being replaced, this is not a refinance) and the purpose of the cash out is to purchase another dwelling.
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#1973956 - 11/04/14 03:45 PM Re: Cash out 1 to Purchase another ComplianceNerd
Tater Offline
Platinum Poster
Joined: Jan 2006
Posts: 631
Missouri
It's a Home Purchase Loan.

Originally Posted By: "GIR Page 8"
1. A home purchase loan is any loan
secured by and made for the purpose
of purchasing a dwelling.


No requirement exists that the property being purchased be the same as the collateral.

Good luck!
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#1973957 - 11/04/14 03:45 PM Re: Cash out 1 to Purchase another ComplianceNerd
TMatt87 Offline
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TMatt87
Joined: May 2011
Posts: 1,940
Idaho
Coded as a purchase, but you report the owner-occupancy and geocoding of the property securing the loan.
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#1973964 - 11/04/14 03:47 PM Re: Cash out 1 to Purchase another ComplianceNerd
ComplianceNerd Offline
Gold Star
Joined: Nov 2011
Posts: 378
Texas ...
Report the collateral rather than the dwelling being purchased?
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#1973966 - 11/04/14 03:48 PM Re: Cash out 1 to Purchase another ComplianceNerd
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,964
TN
Yes. For purchases or refinances you report the property taken as collateral. For home improvement loans you report the property being improved.
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#1973968 - 11/04/14 03:50 PM Re: Cash out 1 to Purchase another ComplianceNerd
TMatt87 Offline
Diamond Poster
TMatt87
Joined: May 2011
Posts: 1,940
Idaho
Correct.

"For a home purchase loan, an institution reports the property taken as security."
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#1973972 - 11/04/14 03:52 PM Re: Cash out 1 to Purchase another ComplianceNerd
ComplianceNerd Offline
Gold Star
Joined: Nov 2011
Posts: 378
Texas ...
Thanks everyone! smile
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#1976979 - 11/17/14 10:54 PM Re: Cash out 1 to Purchase another ComplianceNerd
tic toc Offline
100 Club
Joined: May 2006
Posts: 138
Springfield IL
HMDA reportable if it is cash out, proceeds used as a down payment for purchase of new home, but a short term loan. (12 mo) until sold?
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#1976986 - 11/17/14 11:35 PM Re: Cash out 1 to Purchase another ComplianceNerd
TMatt87 Offline
Diamond Poster
TMatt87
Joined: May 2011
Posts: 1,940
Idaho
Sounds like a bridge loan to me. Those are exempt as temporary financing (if the loan is being paid off with longer term financing).
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