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#1976917 - 11/17/14 08:39 PM HMDA Questions - Purchase, Refi, or Not Reportable
mweaver Offline
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mweaver
Joined: May 2014
Posts: 10
Pennsylvania
Four individuals, lets call them A, B, C and D, get a loan in 2000 to purchase an investment property. Somtime later the four individuals form XYZ LLC together.

In 2013, individual A decides to sell his portion of XYZ LLC to individual E. The deed to the investment property is transfered from individuals A, B, C and D to XYZ LLC in December 2013.

In April 2014 a loan is closed to satisfy and replace the original loan from 2000 on the property but now in the name of XYZ LLC to reflect the new ownership of the company (B, C, D and E).

Because XYZ LLC was not the original borrower of record this would not be considered a refinance. Because the funds from the loan were not directly going towards purchasing the property it would not be a purchase. Therefore I think this is not reportable, and is basically a loan to reimburse a cash purchase. Just want to make sure I am right on this.
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#1976929 - 11/17/14 09:06 PM Re: HMDA Questions - Purchase, Refi, or Not Reportable mweaver
raitchjay Offline
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Joined: Oct 2009
Posts: 9,088
OK
I agree with your analysis.
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#1976933 - 11/17/14 09:10 PM Re: HMDA Questions - Purchase, Refi, or Not Reportable mweaver
RR Becca Offline
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RR Becca
Joined: Sep 2004
Posts: 5,249
out of the frying pan...
I had to read it through a couple times, but I also agree.
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#1976947 - 11/17/14 09:31 PM Re: HMDA Questions - Purchase, Refi, or Not Reportable mweaver
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
I agree also. Had the transfer of ownership been simultaneous with this latest loan. It would be a purchase. As is, it is nothing for HMDA.
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