Construction Replaced w/ Permanent Financing

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Question:

HMDA reportable? Construction Loan that will be replaced with Permanent financing but also taking a 1st on a rental property and a second on his primary. What if the additional collateral was a refinance (refinanced a small 1st lien loan on a rental property and took that collateral as well on the construction loan).

Answer:

The conversion of a construction loan to permanent financing is always reported as a home purchase.

Also for future reference - if you have mixed purposes, then home purchase always trumps home improvement and refinancing. Home improvement always trumps refinancing.

First published on BankersOnline.com 9/24/12