Posted By: laf0915
Is this a purchase for HMDA or not reportable? - 05/08/15 08:11 PM
Customer #1 purchased a commercial building with apartments. This customer has an LLC with customer 2 who was going through a divorce. Therefore, the initial loan was done in the personal name of Customer #1 and was vested as such. Divorce is now final, so the parties wanted to get the debt into LLC's name. A quit claim was prepared in April and recorded in April transferring the property from Customer #1 into the LLC. We made a loan in May to the LLC and used the funds to pay off the original loan. For HMDA, this is not a refinance, because different borrowers. I also don't think it is a purchase as the property was already in LLC's name when we made the loan. Am I correct? I feel that it is not HMDA reportable but would like validation. Thanks.