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#563469 - 06/07/06 06:59 PM Refinance or construction
Lu Offline
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Joined: Apr 2002
Posts: 597
A customer is consolidating 5 construction loans into one construction loan. It is still a construction loan. Would you report this on HMDA as a refinance or leave it as a construction?
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#563470 - 06/07/06 07:08 PM Re: Refinance or construction
Sound Tactic Offline
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Sound Tactic
Joined: Feb 2005
Posts: 5,349
I would say refi because you are refinancing the same security (the construction deed).
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#563471 - 06/07/06 07:10 PM Re: Refinance or construction
Sound Tactic Offline
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Sound Tactic
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oh wait, its still temporary financing
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#563472 - 06/07/06 07:11 PM Re: Refinance or construction
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,964
Bloomington, IN
I will assume that the construction on the five properties are still in progress and this one construction loan will be paid from a permanent financing source. If that assumption is correct you have a temporary construction loan that is not reportable.
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#563473 - 06/07/06 07:14 PM Re: Refinance or construction
Sound Tactic Offline
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Sound Tactic
Joined: Feb 2005
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Thanks Dan. I love getting stuck on one detail. Can't wait until the CRCM test. I wonder if I will get them right on there
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