If I say I am borrowing money to purchase a 1-4 dwelling - I am not sure what difference it makes.

I agree 100%, however if you say "I am borrowing money to give to my "whatever" to purchase a 1-4 dwelling" then I would not classify that as a purchase. As I've said, and you just stated, it is the intended use of the funds stated by the borrower.

This whole conversation started because the original poster did not clarify if the father was purchasing the home or if he was gifting the funds to the daughter to purchase the home. It was assumed he was gifting the funds.

I've never denied that the intended use of the funds by the borrower can be relied on....just that the borrower can't by their words change the regulatory or Webster's definition of a home purchase and the lender must make the final determination as to what is actually going on. The word "purchase" coming out of a borrowers mouth doesn't make it one for HMDA purposes. If someone says they want a "home improvement" loan, but when the lender looks at the property and realizes it's bare ground, and they really want a "construction" loan......it isn't a HMDA home improvement loan because those words came out of the borrower's mouth.

Sorry - the OP said this: "Borrower used the equity in his home to purchase a home for his daughter."

Why this whole thread went off the rails with the whole gift thing, then I will let the rest of you sort it out.

By George you're right.

HMDA - Purchase
TRID - Home Equity

I think a lot of us picked up on this comment and got side tracked.

The purpose of the loan is to give funds to the daughter