If an obligation secured by a dwelling is satisfied & replaced by an obligation in which a guaranty of the credit obligation is secured by a dwelling but the new obligation is not secured by a dwelling, is the transaction reportable under HMDA?

Compliance > Regulation C - HMDA > FFIEC FAQs
Q:  If an obligation secured by a dwelling is satisfied and replaced by an obligation in which a guaranty of the credit obligation is secured by a dwelling but the new credit obligation is not secured by a dwelling, is the transaction reportable under HMDA?
 
A:   No, a transaction is not reportable as a home purchase loan or refinancing unless the credit obligation, itself, is secured by a dwelling. See 203.2(h), 203.2(k)(2). An obligation not secured by a dwelling is reportable as a home improvement loan only if classified by the lender as a home improvement loan. See 203.2(g)(2).
 

This can be found in FFIEC’s FAQs on HMDA-related questions, which can be found at:  http://www.ffiec.gov/hmda/faq.htm

Add Feedback