Thread Options
#625889 - 10/17/06 08:29 PM Cash out to purchase partial interest - HMDA?
RR Becca Offline
Power Poster
RR Becca
Joined: Sep 2004
Posts: 5,245
out of the frying pan...
I know we've talked about this before but I didn't have any luck with my search.

3 sisters inherit house free and clear. Sisters 1 and 2 are buying out sister 3, take a 1st mtg on house to do so. Is this a HMDA purchase or just a non-reportable cash-out?
_________________________
You call it ADD. I call it multi-tasking.

Return to Top
Lending Compliance
#625890 - 10/17/06 08:39 PM Re: Cash out to purchase partial interest - HMDA?
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,761
Bloomington, IN
We would treat this the same as a spouse buying out the other spouse in a divorce situation. Since there is no existing lien on the property we would treat it as a purchase. If there was an existing lien that was being refinanced, we would report it as a refinancing.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#625891 - 10/19/06 01:15 PM Re: Cash out to purchase partial interest - HMDA?
RR Becca Offline
Power Poster
RR Becca
Joined: Sep 2004
Posts: 5,245
out of the frying pan...
Thanks Dan, I was having a very brain-dead day.
_________________________
You call it ADD. I call it multi-tasking.

Return to Top

Moderator:  Andy_Z