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#413468 - 08/24/05 08:17 PM Swing Loans/HMDA/Refi?
Hannah Offline
Junior Member
Joined: Jan 2003
Posts: 42
Missouri
Here's our scenario: We had an original loan that was a construction loan and non-HMDA reportable. We then made another loan that was for permanent financing. Normally, according to GIR D-6, this would be coded as a purchase. Our examiner, however, feels that it should have been coded as a refi for HMDA, since the customer owned the land in the original loan. Any help is appreciated!

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Lending Compliance
#413469 - 08/24/05 08:57 PM Re: Swing Loans/HMDA/Refi?
grmasterb Offline
Diamond Poster
grmasterb
Joined: Feb 2004
Posts: 1,249
Indiana
Hannah-

I pulled this straight from the Reg C Commentary:

5. Construction and permanent financing. A home purchase loan includes both a combined construction/permanent loan and the permanent financing that replaces a construction-only loan.

Seems that your examiner needs to read the Reg C commentary.

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#413470 - 08/24/05 10:26 PM Re: Swing Loans/HMDA/Refi?
CRAatBOK Offline

Power Poster
Joined: Mar 2004
Posts: 6,172
Further South than I wanna be.
Land isn't HMDA reportable so why would it be a refi? DUH.
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#413471 - 08/25/05 01:58 PM Re: Swing Loans/HMDA/Refi?
Anonymous
Unregistered

Thanks! The OCC has changed their mind...woo-hoo!! That doesn't happen too often.

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#413472 - 08/25/05 03:18 PM Re: Swing Loans/HMDA/Refi?
Hannah Offline
Junior Member
Joined: Jan 2003
Posts: 42
Missouri
Oops. Anonymous above was me. Had not logged in yet!

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#413473 - 08/25/05 05:46 PM Re: Swing Loans/HMDA/Refi?
bgehres Offline
100 Club
Joined: Mar 2005
Posts: 126
We are currently going through an exam with FRS and posed this question to them. After much discussion, they agreed it would be considered a purchase.

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