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#2011093 - 04/29/15 07:44 PM Construction/Perm Twist Question
Cedar Point Guy Offline
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Cedar Point Guy
Joined: Nov 2009
Posts: 732
Cedar Point
Hi All,

We just started doing construction/Perm loans. If a loan is a construction/Perm loan that never will get to the permeant phase is it HMDA reportable? The customers will be paying off the loan at the end of construction with cash.
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#2011097 - 04/29/15 07:46 PM Re: Construction/Perm Twist Question Cedar Point Guy
raitchjay Offline
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Joined: Oct 2009
Posts: 8,604
OK
You structured a loan with a perm phase...but have no intention of ever reaching that phase?
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#2011104 - 04/29/15 07:54 PM Re: Construction/Perm Twist Question Cedar Point Guy
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,465
Bloomington, IN
If you made a construction/perm loan you have the option to report it when the construction phase is closed or when it is converted to the permanent phase. If you choose to report when it converts to the permanent phase and for whatever reason it does not go to permanent then at that time you will report the loan as an approved but not accepted.
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#2011120 - 04/29/15 08:33 PM Re: Construction/Perm Twist Question Cedar Point Guy
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I agree with Dan's response, but want to clarify somethings:
1. What do you mean by "construction/Perm loan"? Is it a construction phase (closed) followed by a permanent phase (2nd closing) or a construction AND permanent all in 1 closing where the APR is blended?

2. What do you mean it will never get to he permanent phase?
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http://www.bankerscompliance.com

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