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#2253593 - 05/06/21 06:21 PM Cash Out Refi When Paying Off 2 liens?
pp1865 Offline
Junior Member
Joined: Oct 2012
Posts: 43
San Antonio, TX
I have been told by our Mortgage area that they were instructed to report a refinance to pay off a 1st and 2nd lien as a cash out refi (32) on the HMDA LAR despite no additional cash being disbursed to the Borrower(s)at closing. Is that correct? I had figured it would have been a no/limited cash out refi (31) instead. Your insight is greatly appreciated.

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#2253601 - 05/06/21 07:06 PM Re: Cash Out Refi When Paying Off 2 liens? pp1865
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,717
Galveston, TX
The refinance of a 1st and 2nd lien when the 2nd lien was not originally used for the purchase of the property is a Cash-Out Refinance transaction in the secondary market and not a no/limited cash-out, regardless of any cash back to the borrower.
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#2253611 - 05/06/21 08:11 PM Re: Cash Out Refi When Paying Off 2 liens? rlcarey
pp1865 Offline
Junior Member
Joined: Oct 2012
Posts: 43
San Antonio, TX
Thank you so much!

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