Thread Options
#2013671 - 05/12/15 09:31 PM Home Purchase Stated Purpose
Believing... Offline
Gold Star
Joined: Apr 2012
Posts: 287
In the mountains
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?

Return to Top
HMDA

   
HMDA Academy
#2013702 - 05/13/15 12:21 PM Re: Home Purchase Stated Purpose Believing...
NSF, CRCM Offline
Gold Star
NSF, CRCM
Joined: Apr 2013
Posts: 410
VA
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.
_________________________
It is better to act cautiously beforehand than to suffer afterward.

The answers I give are my opinions. Not legal advice.

Return to Top
#2013708 - 05/13/15 12:35 PM Re: Home Purchase Stated Purpose Believing...
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,277
If title was transferred prior to closing, I do not consider the loan a purchase for HMDA.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top

Moderator:  SMQ, CRCM