We have an application to purchase an investment property that is a little different. Our applicant has given cash to the seller (down payment) and has agreed to pay off the seller’s existing loan with the proceeds of his new loan. Unfortunately, this was a bankruptcy situation and the seller jumped the gun and has already executed a warranty deed, even though she has not been fully paid, or in this case, released from the debt on her home. Is this considered a home purchase loan for HMDA purposes? Or, is this like the post yesterday -- since title has technically already transferred, it's not subject to HMDA at all?

That is a very strange situation.

If the title is already in the customer's name, then this situation does not meet the HMDA definition of a purchase or refinance in my opinion. So I would not report it on my LAR.

If title was transferred prior to closing, I do not consider the loan a purchase for HMDA.