Borrower had a bridge loan that matured before their out of state property was sold. Rather than extending the note for a few more months, the loan officer paid it off with a new note with regular payments for 5 years followed by a balloon. The loan is secured by the borrowers local residence. Is it reportable? and if it is what would it's purpose be? I'm tending towards not reportable.

What did you institution classify the loan as? (how was it booked) If it is not classified by your institution as purchase, home improvement or refi of a purchase or home improvement loan - then it is not HMDA reportable.

I'm going to throw an opposing opinion in and I'm speculating the bridge loan was for the purpose of purchasing the "local residence" and that the "local residence" is the primary residence. The refi of the bridge loan is, IMO, a refi of a purchase money transaction.

Down payment loans, that are not temporary loans, secured by a dwelling are reportable. In this instance you are taking a temporary loan and converting it to a permanent loan.

I'm with Dan. This is a refinance of a purchase loan.

Dan and David are correct. I finally tracked down the proper person to ask and it was a refi of a purchase. I wish we could require some of these lenders to take some composition courses so that when they do document their files they can put on paper what they're thinking in their heads!!!

I am constantly battling with commercial lenders to document the loan purpose and collateral so I can tell if its HMDA-reportable. I have been trying to banish the word "commercial" from their vocabulary, because commercial lenders assume that if a commercial lender makes the loan, it must be a commercial purpose and commercial property.

I ask them to describe , in five words or less, purpose (new roof for aparment building, refi gas station, purchase medical office, etc.) and collateral (residential rental home, dry cleaners, etc.)

It is amazing how such smart people need constant reminders.

I am no longer surprised when a commercial loan office acts surprised to find out that "some compliance regulation" applies to their loan.

How about this one - "Oh this is a large commercial deal, Reg B doesn't apply!"

I also get very, very tired of that condescending attitude from commercial lenders. Something along the unspoken lines of "Okay little girl, now let the men get back to their REAL jobs!"

It's especially annoying when spoken by someone about 10 years my junior!
Loan Officers!