Hello,
We recently listened to a TRID discussion about what the loan purpose was when we're paying off an open-end loan. We were in the camp that it would be a refi for TRID as we're replacing a loan secured by dirt with a new loan using the same dirt. The discussion was that since the loan being paid off was an open-end loan that the purpose would be home equity and not a refinance. I looked back at 1026.37(a)(9) and I'm not seeing where the above would be true. If it is true, can someone point me in the right direction?

Technically, it would be a Home Equity for TRID.

You need to look at the definition of a refinance:

.37(a)(9)(ii) Refinance. If the credit is not for the purpose described in paragraph (a)(9)(i) of this section, and if the credit will be used to refinance an existing obligation, as defined in § 1026.20(a) (but without regard to whether the creditor is the original creditor or a holder or servicer of the original obligation), that is secured by the property identified in paragraph (a)(6) of this section, the creditor shall disclose that the loan is for a “Refinance".

Notice it references "as defined in" 1026.20(a):

.20(a) Refinancings. A refinancing occurs when an existing obligation that was subject to this subpart is satisfied and replaced by a new obligation undertaken by the same consumer.

.20(a) is found in Subpart C of Regulation Z while open-end credit is found in Subpart B, so it applies only to closed-end loans that have previously been subject to disclosure under Subpart C.

Thanks Randy. I noticed that after I sent it and we're on the right track now.