- This topic has 1 reply, 2 voices, and was last updated 5 years, 4 months ago by
.
-
Posts
-
Per Regulation B, if someone is refinancing a 1st mortgage on their primary residence and getting cash out for another purpose, like to purchase an automobile, would we obtain monitoring information? We are not a HMDA reportable bank.
If the primary purpose of the loan is a refinance of the principal residence then you would collect GMI. See below.
1002.13(a) Information to be requested. (1) A creditor that receives an application for credit primarily for the purchase or refinancing of a dwelling occupied or to be occupied by the applicant as a principal residence, where the extension of credit will be secured by the dwelling, shall request as part of the application the following information regarding the applicant(s):
Official Interpretation 1002.13(a)-5:
Transactions not covered. The information-collection requirements of this section apply to applications for credit primarily for the purchase or refinancing of a dwelling that is or will become the applicant’s principal residence. Therefore, applications for credit secured by the applicant’s principal residence but made primarily for a purpose other than the purchase or refinancing of the principal residence (such as loans for home improvement and debt consolidation) are not subject to the information-collection requirements. An application for an open-end home equity line of credit is not subject to this section unless it is readily apparent to the creditor when the application is taken that the primary purpose of the line is for the purchase or refinancing of a principal dwelling.
- You must be logged in to reply to this topic.