[jenniferlippy]

Part of divorce decree was that wife had to refinance the property in to just her name. Loan is closing at the attorney’s office so that the deed can be signed and transferred to have his name removed. He is not getting any money. For the purpose of TRID, is this a purchase or refinance? We have always treated these as purchase as one is buying out the other’s interest, but in this particular scenario we are getting kickback from the attorney because they think it should be a refinance since he isn’t getting any money. If purchase is the correct answer what would you put for sale price, they are also questioning what we have in that field.

[jholzknecht]

Regulation Z does not address this specific issue.

It appears that the wife had previously acquired an interest in the property that secures the loan; therefore it does not appear to be a purchase. If the new loan satisfies and replaces the existing transaction it meets the definition of a refinance.

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