I think I have spent too much time dwelling on the answer to this question so I need input.

We have a loan that is being rewritten. Originally the loan was to purchase and repair a house for resale - six month note with the primary source of repayment being the sale of the property. Now six months has passed and they want to convert to payments for five years but the primary source of repayment is still the sale of the house. So I am thinking we need to report this loan now as a refi because it was secured and is still secured by this property. Thoughts?

The original loan should have been reported as a home purchase (see the FAQs) and this loan will be reported as a refinancing.

http://www.ffiec.gov/hmda/faqreg.htm

First loan was reported as purchase. Thanks. I just needed to step away and get anothers opinion.

Scenario: Applicant applies for $100k mortgage loan. Subsequent appraisal supports only $90k. Bank makes counter-offer for $90k. Applicant accepts counter-offer but does not consummate loan. Action Taken = Approved Not Accepted or Denied?

Score so far: 5 for Denied (3 consultants, 2 compliance officers), 2 for Approved Not Accepted (1 compliance officer plus Fed's HMDA Help)

I'm in the Denied camp. Applicant did not get credit on the original terms requested. "Accepted" = consummation.

Correct.

If they don't consummate the deal then for whatever reason they changed their minds and did not accept the counteroffer. Unaccepted counteroffers are reported as denials for HMDA purposes.

Tack on question.

Customer applies for $xxxx, during the process the amount changes (sometimes higher, sometimes lower). Later we deny the loan for an unrelated reason, collateral, no money for closing, etc. Do we report the amount initally applied for or do we go with the amount that was later agreed on?

And then with a slight variance, would the answer to this question change if the loan was approved, not accepted rather than denied?

Or is this a matter of no answer, just be consistent?

I used to have 1 or 2 a year and did not worry about this too much, I have had several already this year so maybe I should get really comfortable with an answer.

These are the difficult questions to answer in a forum.

Customer applies for $xxxx, during the process the amount changes (sometimes higher, sometimes lower).

Why the loan amount is changing would have an influence on my answer/opinion.

If the borrower amended the application for a new amount then we report the amended amount. This holds true regardless if it becomes a denial or an approved but not accepted.

If the bank is amending the amount, for whatever reason other than the applicant requesting the change, then the original amount applied for would be reported for both a denial or an approved but not accepted.

So it depends on who requested the change in loan amount. Got it, makes sense, thanks.