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#592322 - 08/02/06 06:56 PM HMDA Question
gunches Offline
100 Club
Joined: Dec 2005
Posts: 210
I did a loan to purchase a house, secured by new residence-term is one year and will be paid off from sale of prior residence. Is this HMDA reportable

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Lending Compliance
#592323 - 08/02/06 07:10 PM Re: HMDA Question
Reed Offline
Diamond Poster
Reed
Joined: Sep 2005
Posts: 1,251
West Coast
Yes, it will be paid from the sale of an asset, not permanent financing.

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#592324 - 08/02/06 07:12 PM Re: HMDA Question
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
I agree because it also does not meet the definition of a bridge loan.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#592325 - 08/02/06 08:42 PM Re: HMDA Question
Graham Priest Offline
Member
Joined: Jul 2004
Posts: 89
Lexington, Ky

It sounds like a bridge loan to me. Do you define temporary financing in your loan policy? Doing so will allow you to exclude the loan for HMDA. Temporary is usually construction and bride. Best to define these in policy to avoid confustion. Also helps during the HMDA review by the regulators.

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#592326 - 08/02/06 08:51 PM Re: HMDA Question
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
How is this a bridge loan? The loan is not bridging any gap of funds to obtain permanent financing.

Here's another recent discussion.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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