[Annmichele]

Our bank started HELOCs about 10 years ago and they are starting to mature. I was asked if we need to collect GMI when we start to refinance these. I said yes using the regulation and the definition of refinancing.
(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….
6. Refinancings. A refinancing occurs when an existing obligation is satisfied and replaced by a new obligation undertaken by the same borrower.

I am getting some push back. Am I look at this wrong?
Thanks!

[Kimberly Boatwright, CAMS, CRCM]

If a HELOC is being refinanced into another 1-4 family or multi-family dwelling type loan (e.g. open-end or closed end loan) and you meet the definition of a HMDA reporter you would need to collect the GMI information for reporting. If you are not a HMDA reporter you will still have GMI collection requirements under Reg B/ECOA (§ 1002.13(a)(1)) and/or FHA depending on who your regulator is for principal residences.

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