Would GMI be collected on a HELOC where the funds will be used as a downpayment on a new primary residence? The Bank is HMDA reportable, but I would think that since they are not going to report this on the LAR at this time (to avoid double reporting for the acutal purchase loan) that GMI would not be collected for HMDA purposes but the commentary to 12 CFR 202.13 is throwing me off.

An application for an open-end home equity line of credit is not subject to this section unless it is readily apparent to the creditor when the application is taken that the primary purpose of the line is for the purchase or refinancing of a principal dwelling.

Would this include only a HELOC where the funds are enough to completely purchase the new residence, where no other purchase loan is necessary or is the downpayment enough to qualify under Reg. B.

We've debated this many times here at BOL (and I've lost!). You collect GMI for Reg B, but you do not report this loan under HMDA (if your bank doesn't report HELOCs).

One other note: This loan is just as much a purchase as the other loan (non-down payment).

Even though the HELOC is only used for the downpayment, GMI should be collected since it is used to help purchase the home.

For HMDA reporting, if the HELOC is eventually going to be paid off and termed out then do not report it at this time. If it is not going to be paid off, then only report if you report lines of credit.