Answer by Andy Zavoina:
Consider the term and the source of repayment. I do not believe there is a concrete definition so first, decide how you want to handle it and do so consistently with similar loans.
Secondly, I believe that if the home improvement loan is short term, fully amortized, but expected to be paid by ordinary income, it would be reportable.
Answer by David Dickinson:
This posting will provide more information about Temporary Financing and HMDA.
First published on BankersOnline.com 3/17/03