Have a 2nd lien loan request that was to be used "to payoff the contractor's outstanding invoice" on a newly constructed primary dwelling. We held the interim note, but the permanent was financed by another company. Being that it was regarding the new construction, would this be reported as a purchase?

It's been a while since I was asked this specific question and i can't recall what I stated in the past. Today, I am thinking that a purchase sounds reasonable as the funds are going directly to the contractor to pay for the "newly constructed primary dwelling." I view this similar to the end financing of a temporary loan - where the contractor is essentially the lender in this case.

Others may disagree, so I will be interested to see what they say about this topic that is not exactly addressed by the rules.

Yes sir, I know I have seen something along these lines asked in the past, but I can't seem to find them. But I agree with your assessment.