Under the new FAQ, I'm unclear if a construction loan to construct a primary residence is HMDA reportable. The loan is for 12 months and is to be repaid by outside permanent financing (no commitment). Because I do not have a commitment for permanent financing, is this HMDA reportable?

I think that these loans are specifically exempt from reporting, however, using your same logic to get a better explanation on the rehab and flip example, I asked this question in a lengthy call with an examiner this morning. Her reply: "Are you going to purchase the house?" (If I bought the lot and paid the contractor, don't I already own the house?) If anyone can explain what she was asking here, you're doing better than me.

I thought construction loans were specifically mentioned as a type of temporary financing, and therefore not reportable?

Where can I learn more about the KC opinion?

As I stated in another thread I am working on this question with FDIC KC Regional as well. So far, the answer that I am getting is that a speculative construction loan (a construction loan to a builder for a home to be sold) would not go on because the BUYER's permenant financing would be reportable. I requested them to clarify that the reason this doesn't go on is not that it is construction, but instead that there would eventually be SOME TYPE of permenant financing (not that I agree with that, the buyers could pay cash). So are we to decide whether or not there may/may not be some type of permenant financing and use that as the basis for determining whether or not a construction loan goes on? Again, still waiting for the response.