I get construction and bridge are temp and not to be reported. I also get that just because term is short, doesn't make it temporary. But do other terms of the loan make it so? See below:

Home improvement loan, 12 months Interest Only, Balloon at the end (no plans to refinance).

Would this be temporary, or reportable as HI?

If there are no plans to refinance, i assume the repayment plan is a big lump sum of money at maturity. If that's the case, then yes, it would be reportable. The key is whether repayment of a longer term is contemplated or not. If not, then it's simply short term. If it is, then it's temporary financing.

OK. I have read about it being temporary if longer/permanent financing is going to replace the original loan. But I wasn't sure since this one is interest only.

You might find the articled "HMDA Temporary Financing" at our website helpful.
http://www.bankerscompliance.com/compliance-resources/free-downloads.htm

I share your struggle, George! At face value, it seems like the borrower has a need for 12-month financing to tide him over until a single lump sum source of payment appears in a year. If he was making principal payments over these 12 months, I have no problem with the permanent financing.

What is the difference between receiving payoff from an expected inheritance, the proceeds from the sale of another property, or a longer-term mode of financing?

Also, George, your loan is "interest only" until maturity when the entire principal is due, so there is principal due just all in one payment. The loan will be paid in full. Because no long term financing is contemplated, your customer simply intends to pay this loan off, this is short term financing and reportable.

Temporary financing presumes that another loan follows, with the long term financing being the "real deal" and reportable, with this other loan just a temporary step along the way to that loan.

David, yes sir I have read the article many times. There are just instances that make me second guess and question what is/isn't; like dlucas said.

I guess I will just stick with the definition given in the article, and mentioned by Kathleen, in all instances.