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Mortgage Transaction to Refinance a Loan

Answered by: 
Randy Carey

Question: 
If a mortgage transaction is to refinance a loan secured by land and to purchase a manufactured home to be set up on that land as part of the same transaction, is this transaction reported as a Purchase or a Cash Out Refinance?
Answer: 

Purpose—multiple-purpose loan. Section 1003.4(a)(3) requires a financial institution to report the purpose of a covered loan or application. If a covered loan is a home purchase loan as well as a home improvement loan, a refinancing, or a cash-out refinancing, an institution complies with § 1003.4(a)(3) by reporting the loan as a home purchase loan.

First published on 05/02/2021

Filed under: 
Lending
Filed under lending as: 
HMDA
Reg. C

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