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#2207306 - 02/27/19 07:23 PM Paying down HELOC -- Report purpose as other?
Blue78 Offline
Junior Member
Blue78
Joined: Sep 2007
Posts: 46
New England
Maybe overthinking this. Dwelling-secured loan used to pay down (but not payoff) HELOC, which is also dwelling-secured. Does not meet the definition of refinance because the HELOC is not being satisfied and replaced. Would we report this as "other" under loan purpose? Thank you.
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#2207320 - 02/27/19 07:55 PM Re: Paying down HELOC -- Report purpose as other? Blue78
Inherent_Risk Offline
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Joined: Jan 2017
Posts: 570
Not a purchase, not a refinance, not a home improvement. If it's consumer, then it's Other. Probably over thinking it, which is better than underthinking it.

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#2207390 - 02/28/19 03:01 PM Re: Paying down HELOC -- Report purpose as other? Blue78
Adam Witmer Offline
Power Poster
Joined: Sep 2010
Posts: 2,658
I agree with Inherent_Risk as this isn't a purchase, refi or HI loan. Therefore, if this is a consumer purpose loan, it would be reported as "other purpose," but if it is for commercial/business purposes, it would not be reported because "other" purposes are not reported for business purpose loans.
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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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#2207626 - 03/04/19 03:15 PM Re: Paying down HELOC -- Report purpose as other? Blue78
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Agree and just want to add why this isn't a refinance: It's not satisfying, replacing, extinguishing the LOC. It's paying down the balance.
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David Dickinson
http://www.bankerscompliance.com

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