I have a scenario that I need some experts to chime in and assist.

Refinance application, all cash out refinance, (not for home improvement), no lien to be paid. The application taken and cancelled prior to an underwriting decision.

I thought it would not be reporable since it was not going to replace another lien, however I have reread "transactions to be reported" and now think it should be reported as a refinance with cancelled code.

Your expert assistance is appreciated.

Regards

If there was no prior lien being satisfied, it does not meet the definition of a "refinance" for HMDA purposes.

Thanks Becca - that is how I handle the originated loans, but I was questioning myself on the loans that are declined and cancelled that are on free and clear property.

Definitely not a refinance for HMDA reporting purposes.

thank you to the Board! Happy HMDA filing!