P and I Payments - HMDA Reporting

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Question:

I work in commercial lending and we have several construction loans to builders that we are now having to extend the maturity date and modify the payments to P and I (principal and interest) because the homes are not selling. Is this HMDA reportable?

Answer:

Yes. You are converting construction loans to permanent financing. You will report them as a home purchase. From page D-6 of A Guide to HMDA Reporting: Getting It Right:

...A home purchase loan includes both a combined construction/permanent loan and the permanent financing that replaces a construction-only loan....

First published on BankersOnline.com 2/11/08