A two year loan for the purpose of converting from a construction to a perm. It is an investment property and the owner wants a loan until the house is sold. The construction portion was financed by us.

Is the customer making regular payments?

The new loan would be interest only monthly, principal due at maturity.

Temporary financing.

Where do I find the definition of temporary financing. I have another loan that is to purchase a condo with a term of two years. I believe it is HMDA and I just want to be sure.

Thank you.

Reg. C or the GIR does not define temporary financing. You have to look to the primary source of repayment, not the term.

Do a search using "temporary financing" (with the "") and my name in the username field and you will find a lot of discussion on temporary financing, including a bulletin from the FDIC Chicago Regional Office.

Thanks again for all your help. I have to keep reminding myself that HMDA is not my enemy!!!

Sounds like a two year term loan with no source of repayment other than the possible sale of the property. Temporary financing??