When a customer consolidates loans (for example home mortgage and auto loans are combined with an existing commercial real estate loan), executes a modification agreement and a new note which is secured by the home, auto and commercial real estate, is the transaction HMDA reportable?

When or how does a modification agreement that involves a dwelling make it not reportable?

Modifications are not HMDA reportable. Period. You must REPLACE an existing mortgage with another before it becomes a refinance which is HMDA reportable.

If you are truly modifying the existing loan then why is there a new note? Only a modification agreement would be necessary. If the new note is now your legal agreement then it replaced and satisfied the existing note therefore making it a refinancing.



I'm sure this is a mis-quote on TR's part. Satisfying and/or replacing the mortgage has no bearing on the definition of a refinancing. The obligation (note) must be satisfied and replaced. See the following FAQ at the FFIEC's Web site.

Refinancing --- satisfaction of lien. Is the satisfaction of a lien (mortgage) relevant to determining whether an obligation is a reportable refinancing?

Answer: No, the satisfaction of a lien is neither necessary nor sufficient to create a reportable refinancing. The credit obligation must be satisfied and replaced; it is not relevant whether the lien is satisfied and replaced. See 203.2(k)(2)

Thanks for cmya, Dan. Yes, I meant note.

Thank you. Your responses have made it clear that a new note implies refinancing even though a modification agreement was executed. I appreciate your help!