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#47203 - 12/06/02 12:07 AM HMDA Reportable
Anonymous
Unregistered

Using a 2nd to pay off construction loans that were to build primary residence - term is 10 years. HMDA reportable?

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General Discussion
#47204 - 12/06/02 02:05 AM Re: HMDA Reportable
Princess Romeo Offline

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Princess Romeo
Joined: Jun 2001
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Where the heart is
Based on the information you provided - Yes.
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#47205 - 12/06/02 02:25 AM Re: HMDA Reportable
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
I agree with Bonnie. You are converting a temporary "purchase money loan" into a permanent loan which is secured by a dwelling (the lien position plays no role in determining HMDA eligibility). The loan would be reported as a purchase.
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#47206 - 12/06/02 01:38 PM Re: HMDA Reportable
JMB Offline
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JMB
Joined: Mar 2002
Posts: 59
Michigan
Okay, it IS Friday, but why would you put a second in place? Won't you have LTV problems? I agree that it is reportable.......

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#47207 - 12/06/02 01:49 PM Re: HMDA Reportable
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
Not necessarily. As an example we just converted a $540k constuction to perm. We put $300k in the secondary market (FHLMC) and put a 2nd on the home for $240k (total LTV 80%). Both loans are reported on our LAR as a purchase.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#47208 - 12/06/02 02:12 PM Re: HMDA Reportable
complylady Offline
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complylady
Joined: Jul 2002
Posts: 614
Michigan
I would report this as a refi as it is refinacing (paying off a mortgage).

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#47209 - 12/06/02 02:56 PM Re: HMDA Reportable
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
Look at page D-7 of the GIR.

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.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#47210 - 12/06/02 04:05 PM Re: HMDA Reportable
Anonymous
Unregistered

That was exactly the situation we had.

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