This is a strange transaction that I need some guidance on. The bank made a loan to an LLC owned by an individual that received a SFR
by an act of donation on which there was a debt owed by the father at another bank. There is a title policy in the name of the son, but the bank made the loan to his LLC which does not hold title to the property. The bank paid off the debt at the other bank and funded cash out of 50% of the total loan proceeds to the LLC. It appears that the son acquired the SFR by donation, but the LLC is repaying the debt. Is this a reportable
HMDA transaction? If so, would it be reported as a purchase? Its not a typical assumption as described in the regulation.
Thanks.