HELOC Simultaneous with 1st Mortgage

Tagged: , ,

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
  • #37473

    HMDA purpose: The 1st mortgage will be used to purchase the property as a primary residence.
    The additional 2nd mortgage HELOC is being requested for personal expenses.

    In this scenario – is it acceptable to record the HELOC as a “other” for HMDA purposes? No other purposes applies (it is not refinancing and is not HI). Or would it also be recorded as a “purchase” because it is simultaneous with 1st mortgage?


    You’re on the right track. If the HELOC 2nd lien did not involve a refinance or funds for HI or to purchase a dwelling, the HMDA loan purpose would be 4-Other. It originating at the same time as the purchase mortgage transaction means nothing unless proceeds were disbursed to help with that purchase.

Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.