Borrower A gets a home loan from Big Bank USA in 2011. Big Bank USA lets Borrower B assume the loan in 2015. In 2017, Borrower B applies with us to refinance the home. Is this not reportable for HMDA? Definitely not Home Improvement, doesn't seem refinance would fit because the borrowers are not the same, and not sure it fits purchase since they assumed the loan in 2015.

I should add that when we did our title work the commitment shows the property vested in the name of Borrower B. The loan payoff to Big Bank USA was in the name of Borrower A (since that is still who they showed on their loan I guess...)

If they've got a signed assumption agreement, Borrower B should be the current borrower on the loan and your loan would meet the definition of a refinance.

Looking at this more I don't know exactly how this all went down because we weren't the original lender. Borrower B was in title when we did our title commitment so they were the legal owners of the property at the time of application (and subsequent loan closing). Our funds were used to payoff a loan to Big Bank USA in the name of Borrower A and we have a payoff statement that clearly shows the loan is still in Borrower A's name.

Doesn't sound to me that B actually officially assumed the loan - sounds like they did something under the table.

Agreed. That is what has led to my quandary! I don't know how to report or if it needs reported at all...

If Borrower A and Borrower B don't have a written agreement, A signed a deed giving the property to B, and B has been making the payments to Big Bank, I don't think you've got a reportable transaction.

However, unless the sale wasn't an arms-length transaction, I don't see it happening that way.

I'm thinking "not reportable". It definitely isn't a home improvement, it isn't a refinance because the borrowers aren't the same (payoff to Big Bank was in the name of Borrower A and our loan is to Borrower B), and isn't a purchase because Borrower B can't purchase something he already gained title to previously. Correct?