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#2194990 - 10/09/18 06:00 PM HMDA - Cashout
Cat Lover Offline
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I have a cashout on an apartment building the purpose is to payback investors. Would the loan purpose be Cash Out-Others?

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#2194994 - 10/09/18 06:14 PM Re: HMDA - Cashout Cat Lover
John Burnett Offline
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This is a business purpose loan, right? As such, it's not HMDA reportable unless it's a home purchase loan, a home improvement loan or a refinancing.
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#2194999 - 10/09/18 06:22 PM Re: HMDA - Cashout Cat Lover
Adam Witmer Offline
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In other words, if the only category your loan fits into is "other," it won't be reportable if it is a business purpose loan.
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#2195022 - 10/09/18 07:24 PM Re: HMDA - Cashout Cat Lover
John Burnett Offline
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John Burnett
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Cape Cod
Wait a minute. We actually need more info to give you a correct response. Is this new loan a refinancing of an existing loan with both the old loan and the new loan secured by the apartment building, with cash out to reimburse investors?
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#2195025 - 10/09/18 07:41 PM Re: HMDA - Cashout Cat Lover
Cat Lover Offline
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There is no loan outstanding the property is free and clear, money to buy out the investors.

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#2195026 - 10/09/18 07:44 PM Re: HMDA - Cashout Cat Lover
Adam Witmer Offline
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Would "buy out" be a purchase? Not sure I understand...

Who is your customer (individual, entity, etc) and who is the property currently titled/deeded to?
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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#2195044 - 10/09/18 08:44 PM Re: HMDA - Cashout Cat Lover
Cat Lover Offline
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Actually the credit analysis states that we are payoff existing loans and additional funds be used buyout affiliated partner. The loan is to a business entity.

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#2195064 - 10/10/18 11:52 AM Re: HMDA - Cashout Cat Lover
Skittles Offline
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TN
You're paying off 'other' debt - right? Not loans with liens on a dwelling?
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#2195101 - 10/10/18 03:46 PM Re: HMDA - Cashout Cat Lover
Cat Lover Offline
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We are paying off loans with leans on a dwelling, and cashing out to buy out the affiliate partners.

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#2195102 - 10/10/18 03:48 PM Re: HMDA - Cashout Cat Lover
raitchjay Offline
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OK
Sounds like you have a HMDA reportable refi then.
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#2195103 - 10/10/18 03:53 PM Re: HMDA - Cashout Cat Lover
raitchjay Offline
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OK
Unless "buy out the affiliate partners" means that the home is currently titled in the affiliate partners names and this loan will transfer ownership to your borrowers--in that case, you'd have a purchase.
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#2195108 - 10/10/18 04:14 PM Re: HMDA - Cashout Cat Lover
Adam Witmer Offline
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To summarize, the bottom line is that you need to determine whether you have a purchase, refinance, or home improvement loan for a business purpose loan to be HMDA reportable. Based on what you provided, we aren't 100% sure, so we don't want to lead you down the wrong path.

If the funds are paying of existing loans (which will be satisfied and replaced by the new financing) where the same entity is the owner on the prior loan(s) as well as the new loan, then it would be a refinance.

If the "buy out" means that title is transferring, it would probably be a purchase.

If the loan doesn't meet the definition of a refinance or purchase (or home improvement), then it would not be reportable at all.

Again, I'm just not sure that we have enough information to give you a 100% answer at this point as you really need to dot your "i's" and cross your "t's" to ensure it is properly reported.
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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