HMDA Reporting on a Cash Out Refinance Loan

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Question:

If we do a cash out refinance loan (borrower owns residence) and all of the cash out is going to pay off credit card debit is it HMDA reportable? There is no current mortgage being paid off.

Answer:

I'm not sure what you mean by "borrower owns residence". I assume it meant there are no existing loans against the dwelling. Go to 203.2 and review the definitions of a home purchase, home improvement and refinancing loan. It does not appear your loan meets any of those definitions.

First published on BankersOnline.com 12/11/06