Reply To: HMDA

Mary Frances

We did a 1 year bridge loan secured by a 2nd mortgage on the borrowers current home (not HMDA). The proceeds were used for the purchase of a new home being financed through secondary market. Secondary market underwriters requested the terms of our loan so a copy of the note was sent to them. The underwriters sent us a condition that our loan had to be for at least 5 years. Since our bridge loan had already closed and we did not want to hold up the secondary market loan closing we did an extension on our loan to extend the maturity date out to 5 years (underwriters were fine with this). I do not think the extension is HMDA reportable since we did not replace and satisfy a mortgage. However, we have a difference of opinion because some of us feel since the loan now has a 5 year term and not really a “bridge” loan it should be reported as HMDA.