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Would this be HMDA reportable?
Bridge loan to purchase primary residence (1 year loan), both homes (current and new) would be used as collateral and the source of repayment would be from the sale of current residence.
We have been told the source of repayment on a bridge loan would have to be permanent financing for it to be considered temporary financing and not HMDA reportable.
Please clarify……….Thanks!I agree with that assessment. See commentary below:
Paragraph 3(c)(3)
1. Temporary financing. Section 1003.3(c)(3) provides that closed-end mortgage loans or open-end lines of credit obtained for temporary financing are excluded transactions. A loan or line of credit is considered temporary financing and excluded under § 1003.3(c)(3) if the loan or line of credit is designed to be replaced by separate permanent financing extended by any financial institution to the same borrower at a later time.
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