Answer:
HMDA is contingent on a collateral test and a purpose test.
The definition of "refinance" is dwelling secured, replace existing loan that was secured by a dwelling and with the same borrower.
The definition of "purchase" is dwelling secured to purchase a dwelling.
If there was no cash out in your scenario, it sounds like a refinance. However, the purpose of the cash-out must be considered. It's to purchase a dwelling. There's also a "trumping" (waterfall) rule in HMDA [Commentary to §1003.4(a)(3) #2]
Your scenario sounds like it meets the purchase definition exactly. I would use the existing dwelling (collateral) to report the property location, occupant, etc. since you don't have a property identified and it doesn't secure this loan.
I don't know where your "expert" is getting their information. Ask them to show you where it is coming from.
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