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#1979273 - 11/26/14 02:59 PM Personal Loan to pay a builder
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Hello, Lender is making a personal (unsecured) loan to a customer for the purpose of paying down a mortgage and to make a payment to the builder that constructed their home.

My thought is that this is not HMDA reportable even with the possible Home Improvement purpose. My reasoning is that it is like paying the VISA bill for purchases that included home improvement type things. As convoluted as it seems.

What are your thoughts out there?
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#1979279 - 11/26/14 03:13 PM Re: Personal Loan to pay a builder Bec
hmdagal Offline
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hmdagal
Joined: Dec 2002
Posts: 3,824
It sounds like they're paying for the construction of the home, which would be a purchase. Loans for purchase or refi have to be secured by a dwelling to be reportable, so I don't think this is a reportable loan.

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#1979285 - 11/26/14 03:26 PM Re: Personal Loan to pay a builder Bec
Bec Offline
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The Great White North
THank you HMDAgal, I was wrong but right! smile Hehehe.
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#1979292 - 11/26/14 03:31 PM Re: Personal Loan to pay a builder Bec
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,341
Galveston, TX
Are they actually paying for the construction - or is the home constructed and the customer is just making a payment to the builder. I don't necessarily see this as automatically reportable.
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#1979296 - 11/26/14 03:43 PM Re: Personal Loan to pay a builder Bec
Bec Offline
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The Great White North
The customer is paying the builder for their already constructed home.
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#1979308 - 11/26/14 03:51 PM Re: Personal Loan to pay a builder Bec
rlcarey Offline
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Galveston, TX
Not reportable.
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#1979309 - 11/26/14 03:59 PM Re: Personal Loan to pay a builder Bec
Bec Offline
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Bec
Joined: Jul 2010
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The Great White North
Thank you for all of your input! smile
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