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#2052249 - 12/03/15 03:45 PM home improvement
swthomeala Offline
Junior Member
Joined: Oct 2005
Posts: 39
Georgia
We have a loan that is coded as a home improvement secured by a CD for the term of 6 months. The loan is to purchase dirt to place in the driveway because of recent rains. At the same time we have a construction/perm loan on a house located at the same property due to be completed by January. The lender states that the loan will be consumed into the permanent loan financing. My thought is that it would still be HMDA reportable because this is a separate loan with a collateral other than the dwelling/property. Or, is it considered temporary financing because the proceeds from the construction/perm will be paying off the loan?
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#2052258 - 12/03/15 03:58 PM Re: home improvement swthomeala
burke116 Offline
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Joined: Jun 2014
Posts: 536
RVA
Home improvement is improvements on a dwelling or on the real property on which a dwelling is located. I would say not reportable if the dwelling has not been completed yet (assuming there is not another dwelling on the property).

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#2052262 - 12/03/15 04:05 PM Re: home improvement swthomeala
raitchjay Offline
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Joined: Oct 2009
Posts: 8,674
OK
Sounds like temporary financing and not reportable to me.
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#2052982 - 12/08/15 03:29 PM Re: home improvement swthomeala
swthomeala Offline
Junior Member
Joined: Oct 2005
Posts: 39
Georgia
Thanks. That was the ultimate decision.
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#2056810 - 01/05/16 07:10 PM Re: home improvement swthomeala
nikki_compliance Offline
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Joined: Mar 2010
Posts: 520
NM
So is a term of 1 year line of credit considered temporary financing for HMDA Purposes?

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#2056835 - 01/05/16 08:40 PM Re: home improvement swthomeala
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,645
Bloomington, IN
So is a term of 1 year line of credit considered temporary financing for HMDA Purposes?

Depends on the repayment source. A 1 year loan is not automatically a temporary loan, it could be just a short term loan and short term loans are not exempt.
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The opinions expressed are mine and they are not to be taken as legal advice.

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