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#2012489 - 05/06/15 06:16 PM HMDA - purpose when changing vesting
shebee Offline
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shebee
Joined: Apr 2008
Posts: 6
Missouri
I have an application to refinance a primary residence, the property is currently vested in a trust, with the applicants as the trustees.

#1- As part of the new loan they are completing a "grant deed" changing the ownership from the trust to the individual applicants. For HMDA purposes is this a purchase (change in ownership) or refinance?

#2 - if the note is signed Joe Smith individually and as trustee then Jane Smith individually and as trustee, but the application was only in Joe and Jane Smith - do you record GMI as B-Joe and co-B-Jane or B-Joe and co-B the trust?

Thank you.

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#2012525 - 05/06/15 07:07 PM Re: HMDA - purpose when changing vesting shebee
Truffle Royale Offline

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#1 Question: Are they doing the deed because they think they have to in order to refinance? I was in a financial planning seminar once where the attorney misspoke stating you needed to be careful about putting your home in your trust because you'd have to take it out if you ever wanted to refinance your mortgage. I would verify with the applicants whether they were under the misguided impression that HAD to do the deed to refi.
Either way, this is a refinance for HMDA.

#2 - Signatures don't dictate GMI. How the application was taken does. Based on the fact that they're doing a deed from the trust to themselves, they are applying as individuals, so you collect and report accordingly.

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#2012531 - 05/06/15 07:13 PM Re: HMDA - purpose when changing vesting shebee
shebee Offline
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shebee
Joined: Apr 2008
Posts: 6
Missouri
Thank you very much. That is how we reported but are getting some internal push-back that we should report differently. I am not sure what the reason for taking the home out of the trust was as this is a mortgage we purchased. I know we are not required to report GMI but our compliance wants it for other purposes.

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#2012576 - 05/06/15 08:05 PM Re: HMDA - purpose when changing vesting shebee
Truffle Royale Offline

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Posts: 17,341
Don't you love INTERNAL push back? I always fall back on 'show me where in the REG or GIR you're finding this'.

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