Posted By: donnac
Is this short term or a bridge loan? - 10/09/12 07:22 PM
Borrower is refinancing primary residence from another bank. Borrower has the house up for sale and our loan term is 12 months, interest only, with the anticipated repayment source being the sale of the house. Borrower has not purchased another house & is living in the house until it sells.
1. Is this a bridge loan since the borrower isn't buying another house? (I've been taught that a bridge loan is the gap financing betweent he purchase of a home & the sale of another home.)
2. Is this short term & HMDA reportable since the anticipated repayment source is the sale of the house?
3. The loan officer considered this temporary financing for HPML purposes and didn't calculate the rate spread. Is this correct? When I calculate for HPML purposes, it is 1.54% & our policy is not to make HPML loans.
Thanks.
1. Is this a bridge loan since the borrower isn't buying another house? (I've been taught that a bridge loan is the gap financing betweent he purchase of a home & the sale of another home.)
2. Is this short term & HMDA reportable since the anticipated repayment source is the sale of the house?
3. The loan officer considered this temporary financing for HPML purposes and didn't calculate the rate spread. Is this correct? When I calculate for HPML purposes, it is 1.54% & our policy is not to make HPML loans.
Thanks.