FORUM PROFILE

HMDA Purpose

Home Forums Home Mortgage Disclosure Act HMDA Purpose

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #2436
    sarah
    Member

    I have a loan that was made for the purpose of reimbursing the borrowers for their expense in purchasing a piece of rental property. They just purchased it in August and want to borrow the money to reimburse their savings account. Would this be HMDA reportable as a purchase?

    #2871
    jholzknecht
    Keymaster

    A home purchase loan must be for the purpose of purchasing a dwelling and the loan must be secured by a dwelling. Your question didn’t mentioned whether the loan was secured or not. Even if it is secured, the loan is not for the purpose of purchasing a dwelling. There apparently is no transfer of title at the time your loan occurs.

Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.