Q: Do we report short-term home improvement loans that have a documented take-out commitment?
A: If a home improvement loan is set up like a construction-permanent loan, the loan should be reported, as explained in comment 203.2(h)-5. This section states that a construction-permanent home purchase loan is not considered a temporary loan and should be reported for HMDA purposes. If the short-term home improvement loan will be replaced with permanent financing of a much longer term, the bank would report the permanent take-out loan but not the short-term temporary loan.
This can be found in - HMDA FAQ#4 of the FAQs. The Federal Reserve Board FAQs can be found at: https://consumercomplianceoutlook.org/2011/second-quarter/hmda-and-cra-data-reporting/