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#1897140 - 02/13/14 09:35 PM 2nd Lien - HMDA Reportable?
Compliance??? Offline
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Joined: Sep 2013
Posts: 76
Please help!

We have a property that someone purchased from his dad. The first lien was made in 2012 - it was HMDA reportable. The 2nd lien was taken out in 2013. Since the 1st lien was reportable last year, do we need to report the 2nd lien this year, March 1st?

It wasn't home improvement, or refinance. Would it be purchase money? Read on, please....

The loan was originally taken out (in the dad's name) and was meant to build a building on the property, but in the end, the money was used to pay off the dad's note for that building.

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#1897146 - 02/13/14 09:39 PM Re: 2nd Lien - HMDA Reportable? Compliance???
raitchjay Online
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What was the first lien loan all about? Was it in the dad's name too? Your dad is still the borrower? He still owns the home?

ETA: Regardless, if the loan WAS reportable, it's reportable in the year of origination...not this year.
Last edited by raitchjay; 02/13/14 09:49 PM.
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#1897160 - 02/13/14 09:50 PM Re: 2nd Lien - HMDA Reportable? Compliance???
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The son purchased the home in 2012, is not in the dad's name on 1st lien. The son owns the home and has since 2012. The son's name is on the Deed of Trust. After the loan was made, the dad moved back into the home. The son is using the home as rental property...the dad is renting.

So, the dad borrowed the money to construct a building, which was completed. The son took out a 2nd lien, to pay off the dad's note (the building).

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#1897163 - 02/13/14 09:53 PM Re: 2nd Lien - HMDA Reportable? Compliance???
raitchjay Online
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The dad borrowed money to construct a building...unless temporary or non-dwelling secured (and if your bank doesn't classify and report non-dwelling secured HI loans), that loan was reportable as home improvement.

The son took out a 2nd lien to pay off dad's note: if i'm understanding correctly, not reportable, as a dwelling-secured loan is getting extinguished, yes, but your borrowers are not the same (dad on first loan, son on 2nd).
Last edited by raitchjay; 02/13/14 09:54 PM.
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#1897431 - 02/14/14 05:12 PM Re: 2nd Lien - HMDA Reportable? Compliance???
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Thank you!

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