{"id":2799,"date":"2022-03-18T16:03:25","date_gmt":"2022-03-18T16:03:25","guid":{"rendered":"https:\/\/albanknews.com\/?p=2799"},"modified":"2022-03-18T16:08:40","modified_gmt":"2022-03-18T16:08:40","slug":"2799","status":"publish","type":"post","link":"https:\/\/albanknews.com\/?p=2799","title":{"rendered":"Compliance Q&A: Loan Refinance Considerations"},"content":{"rendered":"

Question: <\/strong>We have two borrowers who are requesting to refinance a loan secured by one of the borrower\u2019s principal residences, but the purpose of the cash out will be to pay off a lien on a different residence that is only in one of the borrowers\u2019 names. For HMDA purposes, should I report this as a Refinance since both liens are in one of the borrower\u2019s name even if it\u2019s not the same property?<\/p>\n

Answer: <\/strong>Yes, that is correct since the HMDA definition of refinancing does require that at least one of the borrowers be the same but does not necessarily require that the dwelling securing the loans be the same:<\/p>\n

“Refinancing means a closed-end mortgage loan or an open-end line of credit in which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower.” <\/em><\/p>\n

12 CFR 1003.2(p): https:\/\/www.consumerfinance.gov\/rules-policy\/regulations\/1003\/2\/#p<\/a><\/p>\n

\u00a0<\/strong><\/p>\n

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Compliance Alliance<\/strong> 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>and ask for our Membership Team.<\/p>\n","protected":false},"excerpt":{"rendered":"

Question: We have two borrowers who are requesting to refinance a loan secured by one of the borrower\u2019s principal residences, but the purpose of the cash out will be to pay off a lien on a different residence that is only in one of the borrowers\u2019 names. For HMDA purposes, should I report this as a Refinance since both liens are in one of the borrower\u2019s name even if it\u2019s not the same property? Answer: Yes, that is correct since the HMDA definition of refinancing does require that at least one of the borrowers be the same but does not […]<\/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_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-2799","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking","category-compliance-qa","category-publications","has_thumb"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/albanknews.com\/wp-content\/uploads\/2017\/11\/compliance-alliance.png?fit=800%2C800&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/s4Y3P2-2799","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2799","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=2799"}],"version-history":[{"count":2,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2799\/revisions"}],"predecessor-version":[{"id":2802,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2799\/revisions\/2802"}],"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=2799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}