Is the satisfaction of a lien (mortgage) relevant to determining whether an obligation is a reportable refinancing? [Regulation C / HMDA]

Compliance > Regulation C - HMDA > FFIEC FAQs
Q:  Is the satisfaction of a lien (mortgage) relevant to determining whether an obligation is a reportable refinancing?
 
A:  No, the satisfaction of a lien is neither necessary nor sufficient to create a reportable refinancing. The credit obligation must be satisfied and replaced; it is not relevant whether the lien is satisfied and replaced. See 203.2(k)(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

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