We have a new lender working in a new market area. He is making several interest-only bridge loans with the purpose being "refinance of current primary residence to provide cash out for purchase of new residence. This loan will pay out with the sale of the collateral. The cash out is for the down payment on the new home. Is this a reportable home purchase loan?

This scenario is specifically excluded as temporary financing even though it will be paid in full:

Examples: Ficus Bank extends a bridge or swing loan to finance a borrower’s down payment for a home purchase. The borrower will pay off the bridge or swing loan with funds from the sale of his or her existing home and obtain permanent financing from Ficus Bank at that time. The bridge or swing loan is excluded as temporary financing.

If the bridge loan will not be refinanced into longer term financing then it is not exempt from reporting. It does not meet the definition of a temporary loan.

Examples: Ficus Bank extends a bridge or swing loan to finance a borrower’s down payment for a home purchase. The borrower will pay off the bridge or swing loan with funds from the sale of his or her existing home and obtain permanent financing from Ficus Bank at that time. The bridge or swing loan is excluded as temporary financing.

I agree with Dan. If there is not going to be another loan (which I don't think is clear in the OP), then this would be HMDA reportable. If there IS going to be another loan, then it would be the same situation as Joker provided from the commentary and would be exempt as temporary financing.

Agree. To put it in plain English: 1 phase = reportable. 2 phases = don’t report the first phase (temporary financing).