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#2184160 - 07/05/18 03:54 PM HMDA Purpose when buying from estate
Red Raiders Offline
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We have a loan that closed where the borrower's father passed away and left his house to him and his two brothers. With our new loan, our borrower paid off the existing mortgage and paid the two brothers their one-third equity in the house.

I am trying to figure out if this is a "Purchase" but wasn't sure since he was already technically an owner of the property since his father left it to him and his brothers.

Thoughts?
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#2184165 - 07/05/18 04:16 PM Re: HMDA Purpose when buying from estate Red Raiders
hmdagal Offline
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I would report this as an 'other'. As you noted, he was already an owner of the property.

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#2184168 - 07/05/18 04:28 PM Re: HMDA Purpose when buying from estate Red Raiders
Truffle Royale Offline

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Similar circumstance but with a tweak.
Parent's will just states that they hope the homestead will continue to be held by a family member.
It was not given to anyone specifically.
Son has been living in the house and paying parent's mortgage for years.
Now he will pay that mortgage off and the Estate (he's one of the administrator's) will QCD the property to him.
purchase for HMDA?

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#2184185 - 07/05/18 05:25 PM Re: HMDA Purpose when buying from estate hmdagal
Red Raiders Offline
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Originally Posted By hmdagal
I would report this as an 'other'. As you noted, he was already an owner of the property.


I don't think he had actual title to the property until our loan paid off the existing mortgage (and bought out the brother's interest). Does this make a difference?
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#2184193 - 07/05/18 05:46 PM Re: HMDA Purpose when buying from estate Red Raiders
David Dickinson Offline
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Central City, NE
Quote:
Parent's will just states that they hope the homestead will continue to be held by a family member.
It was not given to anyone specifically.
Son has been living in the house and paying parent's mortgage for years.
Now he will pay that mortgage off and the Estate (he's one of the administrator's) will QCD the property to him.
purchase for HMDA?

I would call this a "purchase".
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#2184194 - 07/05/18 05:49 PM Re: HMDA Purpose when buying from estate Red Raiders
David Dickinson Offline
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Central City, NE
Quote:
We have a loan that closed where the borrower's father passed away and left his house to him and his two brothers. With our new loan, our borrower paid off the existing mortgage and paid the two brothers their one-third equity in the house.

Red: I saw your second post, but I still think the son has legal ownership because of the father's will. I don't think this is a "purchase" for HMDA. It's very much like a "refinance" but he wasn't on the previous loan, so I'm with hmdagal - call it "Other".
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