Reg B states that a creditor that receives an application for credit primarily for the purchase or refinancing of a dwelling occupied or to be occupied by the applicant as a principal residence, where the extension of credit will be secured by the dwelling shall take WRITTEN applications for such types of credit but need not take written applications for other types of credit.
Question: if a bank makes a second mortgage loan that pays off the first mortgage, does this application have to be in writing? If so, can anyone give me a cite reference for this?
Thanks,
Leslie

The second mortgage loan fits all the requirements that require the written application. It's for the refinancing of a loan to purchase a dwelling, and the applicant will continue to use it as a primary residence.

The fact that it's a junior mortgage (until, of course, it pays off the first, at which time it rises to Alpha-dog position) has nada to do with the issue.

I agree with John. It may be useful (a little history lesson here) to know why the written application requirement exists. It was placed in Regulation B to provide documentation for applications that are subject to monitoring data collection under 202.13. A simple rule to apply is that if monitoring data is collected for Reg B or HMDA, the application should be in writing.

Thank you both. Does this mean that even if we do not ordinarily classify or report Home Equity loans for HMDA purposes, that this type of loan would still be reportable? I think I know the answer, but I need corroboration before I can take on my consumer lending department! Thanks!
Leslie