Posted By: jmm
Parent down payment - 05/15/17 04:36 PM
I believe the following scenario should be reported as "Purchase" for HMDA but would like other opinions. The parent is refinancing existing loan and taking cash our for credit card debt along with funds for downpayment for daughter to purchase a home. I understand if this borrower was purchase another home themselves and this was the downpayment for sure would report it as purchase, but looking for opinion. The only way I knew this was what the funds were for was lender comments in the file. The disbursement funds were given directly to borrower. Any reference in the Reg would be greatly apprciated, I did not find anything definite.
Thanks in advance.
Thanks in advance.