HMDA reportable as refinancing?: A customer purchases a home and makes payments to the previous owner's directly. The previous owners obtained a lien (deed of trust which states "as evidenced by promissory note) for this transaction. Now our FI has financed the payoff to the pervious owners, a release of the lien to the pervious owners was executed and we have perfected a lien.

Refinancing means a new obligation that satisfies and replaces an existing obligation by the same borrower, in which:

(1) For coverage purposes, the existing obligation is a home purchase loan (as determined by the lender, for example, by reference to available documents; or as stated by the applicant), and both the existing obligation and the new obligation are secured by first liens on dwellings; and

(2) For reporting purposes, both the existing obligation and the new obligation are secured by liens on dwellings.

obligation was owed, in your case an individual who actually filed a lien. It meets the requirements.

Is this a land contract? If so, the bank loan could be a purchase rather than a refinance.

A loan to pay off a contract for deed should generally be reported as a home purchase loan for HMDA reporting purposes if a dwelling secures the loan. [HMDA FAQ – PFRB 2nd Quarter 2011]