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#551629 - 05/19/06 08:02 PM HMDA - Purpose
hawkfan Offline
Member
Joined: Feb 2006
Posts: 83
$60K loan - 30 to purchase and 30 to rehab. 9 month loan and then plans to resell after rehab. I think this is a home purchase loan. Our lender thought it was home improvement. I am under the impression in this case that the home purchase overrides home improvement. Can someone comfirm?

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Lending Compliance
#551630 - 05/19/06 08:04 PM Re: HMDA - Purpose
#12 Offline
Diamond Poster
Joined: Jun 2005
Posts: 1,343
Purchase always trumps home improvement, home improvement trumps refinance.
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CRCM

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#551631 - 05/19/06 08:23 PM Re: HMDA - Purpose
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
A little trick I learned from here on BOL:

Purpose codes:
1 = Home Purchase
2 = Home Improvement
3 = Refinancing

For multiple purpose loans, whatever purpose is first in the order is how the the loan is reported. Therefore a purpose of home purchase is always the #1 reporting purpose, HI #2, and refinancing #3. Hope this helps.
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The opinions expressed are mine and they are not to be taken as legal advice.

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