Bridge loan - taking 1st lien on existing house only (not taking a lien on house being purchased) - and will be paid off when existing house sells - we are not a HMDA reporter - do we get the demographic info (DI) on this loan for Reg B? It is for purchase of new principal dwelling - and will be secured by current principal dwelling... Reg. B 1002.13 states a person can only have one principal residence at a time; however, if a person buys or builds a new dwelling that will be their principal residence within a year, the new dwelling is considered the principal residence.
Our borrower already has a contract on the existing house so we do not anticipate this lasting but a couple of weeks (not more than a year). The new house is not securing the loan and based on my reading of the above, the new house will be the principal residence which is leading me to think this is not going to need DI on this loan. ????
Opinions are mine and subject to change frequently