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.

IF the son received the property by gift and the son used the cash back to fund the LLC - sounds like an other purpose to me and since it is a business loan, it would be not reportable.

Agreed.

Thank you both for your replies.

Dan,
Are you nearing the retiring point? I'm ready to go after 43 years.

Thanks for all the help and assistance.

I'm contemplating looking at possibly the end of the year. I've been in the business in one capacity or another since 1974.

BOL has been especially privileged to have such expert support and guidance for our fellow bankers.

Thank you to all the BOL Gurus!