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#2119169 - 02/22/17 09:27 PM Would have been a Temp loan?
crcmnot Offline
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Joined: Sep 2016
Posts: 351
Borrowers submitted an application yesterday to purchase a primary residence. We were working on preparing the LE when we received an email that the borrower's offer did not get accepted and they were withdrawing their application. No AAN necessary but on the write-up I received from the loan officer it stated that this was an 'interest only loan for 6 months and loan will be refinanced through the secondary market'. Is this HMDA reportable as a purchase or no because it 'was going to be' temporary financing?

Thanks.

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#2119205 - 02/23/17 01:42 PM Re: Would have been a Temp loan? crcmnot
JobSecurity Online
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Joined: Oct 2009
Posts: 604
It was temp, you were going to replace it with a secondary market loan.

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#2119250 - 02/23/17 04:11 PM Re: Would have been a Temp loan? crcmnot
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
If the secondary market loan would have hit your books and then would have been sold, your institution is making the temp and perm financing. Therefore, the perm loan needs to be reported as they are applying for both with one application.
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David Dickinson
http://www.bankerscompliance.com

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#2119284 - 02/23/17 05:59 PM Re: Would have been a Temp loan? David Dickinson
crcmnot Offline
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Joined: Sep 2016
Posts: 351
Would not have hit our books at all. Thanks David.

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