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Do Bridge Loans Fall Under HMDA?

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Question: 
Does a bridge loan fall under HMDA?
Answer: 

A true temporary bridge loan applied to a new home purchase (typically when I am buying a new home, old home has not yet sold, bridge loan will be repaid when old home sells) is not reportable for HMDA.

Refer to Section 203.4 of HMDA

(d) Excluded data. A financial institution shall not report:
(1) Loans originated or purchased by the financial institution acting in a fiduciary capacity (such as trustee);
(2) Loans on unimproved land;
(3) Temporary financing (such as bridge or construction loans);
(4) The purchase of an interest in a pool of loans (such as mortgage-participation certificates, mortgage-backed securities, or real estate mortgage investment conduits);
(5) The purchase solely of the right to service loans; or
(6) Loans acquired as part of a merger or acquisition, or as part of the acquisition of all of the assets and liabilities of a branch office as defined in Sec. 203.2(c)(1).

First published on BankersOnline.com 11/14/11

First published on 11/14/2011

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