Ok here's a good one!

I have a loan that was made to a son,daughter in law, father and mother to improve a farm house on property in the father and mothers name. After sometime they figured they didn't have enough money and the father and mother came back in for another improvement loan using the same property. Now the loans have been refinanced into permanent financing. The new loan is under just the son and daughter. The mother and father have deeded over the house and 5 acres to the children. Would my permanent loan be reported to HMDA as a HI or a purchase since the property transferred in ownership?

My vote is purchase.

Here's my thoughts.

When did the deed transfer take place?

If it was before your loan it would be a HI loan.

If the deed transferred as part of your transaction then the son and daughter-law purchased the property for the cost of the refinancing.

We have a similar transaction for which I'd like to add one question: what constitutes "when" the deed transfer takes place? If I have a transfer that occurred on the same day but prior to the settlement, therefore making it a non-purchase transaction, how should the file be documented to support my HMDA reporting?

I think we need more details. What were they doing with the money?

The law is going to look at any of these based on when the recording was done. As long as the deed was recorded prior to the mortgage, you've got all the documentation you need to support reporting this as HI for HMDA.