{"id":1551,"date":"2019-03-01T14:35:48","date_gmt":"2019-03-01T14:35:48","guid":{"rendered":"https:\/\/albanknews.com\/?p=1551"},"modified":"2019-03-01T14:35:55","modified_gmt":"2019-03-01T14:35:55","slug":"compliance-qa-construction-to-permanent-loans-and-loan-purpose","status":"publish","type":"post","link":"https:\/\/albanknews.com\/?p=1551","title":{"rendered":"Compliance Q&A: Construction-to-permanent Loans and Loan Purpose"},"content":{"rendered":"\n

Question:<\/strong><\/p>\n\n\n\n

For HMDA purposes, would a construction-to-permanent loan be considered a refinance under the Loan Purpose?<\/p>\n\n\n\n

Answer:<\/strong><\/p>\n\n\n\n

It would actually be considered a home purchase loan under HMDA regardless of whether it is a combined construction to permanent loan or the permanent financing that replaces the temporary construction financing. If it is a construction-only loan to be replaced by permanent financing later, it will be excluded as temporary financing under 1003.3(c)(3).<\/p>\n\n\n\n

3. Construction and permanent financing. A home purchase loan includes both a combined construction\/permanent loan or line of credit, and the separate permanent financing that replaces a construction-only loan or line of credit for the same borrower at a later time. A home purchase loan does not include a construction-only loan or line of credit that is designed to be replaced by separate permanent financing extended by any financial institution to the same borrower at a later time or that is extended to a person exclusively to construct a dwelling for sale, which are excluded from Regulation C as temporary financing under \u00a7 1003.3(c)(3) Comment 3, 1003.2(j),<\/em>https:\/\/www.consumerfinance.gov\/policy-compliance\/rulemaking\/regulations\/1003\/Interp-2\/#2-j-Interp-3<\/a><\/p>\n\n\n\n

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call (888) 353-3933<\/strong> or email info@compliancealliance.com<\/a><\/strong>.<\/p>\n\n\n\n

Not a member? <\/strong>Learn more about membership with Compliance Alliance by attending one of our live demos:<\/p>\n\n\n\n

\u00b7         Live Demo on Tuesday, March 5th<\/sup> @ 10:00am CT.<\/a><\/strong><\/p>\n\n\n\n

\u00b7         Live Demo on Thursday, March 7th<\/sup> @ 1:00pm CT.<\/a><\/strong><\/p>\n\n\n\n

Compliance rules and regulations change quickly! For timely compliance updates, subscribe to Compliance Alliance\u2019s email newsletters<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Question: For HMDA purposes, would a construction-to-permanent loan be considered a refinance under the Loan Purpose? Answer: It would actually be considered a home purchase loan under HMDA regardless of whether it is a combined construction to permanent loan or the permanent financing that replaces the temporary construction financing. If it is a construction-only loan to be replaced by permanent financing later, it will be excluded as temporary financing under 1003.3(c)(3). 3. Construction and permanent financing. A home purchase loan includes both a combined construction\/permanent loan or line of credit, and the separate permanent financing that replaces a construction-only loan or […]<\/p>\n","protected":false},"author":1,"featured_media":1070,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[19,33,23],"tags":[],"class_list":["post-1551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking","category-compliance-qa","category-publications","has_thumb"],"jetpack_publicize_connections":[],"jetpack_shortlink":"https:\/\/wp.me\/p4Y3P2-p1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/albanknews.com\/wp-content\/uploads\/2017\/11\/compliance-alliance.png?fit=800%2C800&ssl=1","_links":{"self":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/1551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1551"}],"version-history":[{"count":1,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/1551\/revisions"}],"predecessor-version":[{"id":1553,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/1551\/revisions\/1553"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/media\/1070"}],"wp:attachment":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}