I have a loan that the purpose of loan is to purchase 3 vacant lots & consolidate. They paid off 3 different loans with this loan as well. One that they did pay off was real estate, residential, but it was not in their names, then the other 2 loans they paid off were vehicle loans. The one they did pay off that was residential real estate is another family members loan. So I know the current HMDA rule is if it's a refinance it must meet the 3 questions...with question #2 stating...Is any portion of the new loan paying off any existing debt of the same borrower?...so, this loan wouldn't be HMDA applicable correct? Since they paid off a loan that was not in their name.
Is this correct?