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#613894 - 09/15/06 05:50 PM Refinance or Home Improvement
notuntermywatch Offline
Gold Star
Joined: Jun 2006
Posts: 392
MN
If a customer applies for a second mortgage and comes in within a few days and says, no wait, I really want to apply for a refinance.

What do we do for HMDA...the loan would have been denied either way...we just had not made the credit decision on the second mortgage yet? All early disclosures had been provided for both loan scenarios.

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Lending Compliance
#613895 - 09/15/06 05:55 PM Re: Refinance or Home Improvement
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
If the refinancing still included funds to be used for HI then you will report it as a denied HI request. If none of the funds from the refinancing were to be used as HI then report it as a denied refinancing. You have an amended application and only need to report it once.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#613896 - 09/18/06 10:13 PM Re: Refinance or Home Improvement
CRAatBOK Offline

Power Poster
Joined: Mar 2004
Posts: 6,172
Further South than I wanna be.
Just curious, if you haven't made a credit decision then how can you know the loan would have been denied either way?
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Life is not the way it's supposed to be. It's the way it is. The way you cope with it is what makes the difference.

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#613897 - 09/19/06 12:48 PM Re: Refinance or Home Improvement
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
The way I read it the applicant changed their request to a refinancing before they made the decision on the 2nd mtg. The refinancing was denied and the 2nd mtg would have been denied to if the request had not been changed.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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