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#2011093 - 04/29/15 07:44 PM Construction/Perm Twist Question
Cedar Point Guy Offline
Platinum Poster
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.
Do or Do not There is no try.

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#2011097 - 04/29/15 07:46 PM Re: Construction/Perm Twist Question Cedar Point Guy
raitchjay Offline
Power Poster
Joined: Oct 2009
Posts: 8,604
You structured a loan with a perm phase...but have no intention of ever reaching that phase?
I'm fixin' to fix that.

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#2011104 - 04/29/15 07:54 PM Re: Construction/Perm Twist Question Cedar Point Guy
Dan Persfull Offline
10K Club
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.
The opinions expressed are mine and they are not to be taken as legal advice.

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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?
David Dickinson

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