We had a customer who purchased a single family residence with cash. The customers business then took a loan out to reimburse the customer for the property and the property was deeded to the business using the single family residence as collateral. Is this HMDA Reportable as a purchase?
Just to clarify, this original question is a slightly different scenario. In this example, it would appear to be a purchase as it appears the property is being deeded over at the time of the loan. If that isn't the case, such as the deeding occurring prior to the loan to the LLC (as your second question states), then the answer would be different.
To me, it can only be a purchase if the ownership is changing hands with the loan. If the ownership changed before the loan, it won't be a purchase.
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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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