Please Help:

When is GMI (government monitoring information) required on a Home Equity Loan?

Thanks

If you are a HMDA reporter and the loan's purpose falls within HMDA reporting.

If the loan is to purchase/refinance (such as an 80/20 loan) the borrower's primary residence and secured by the primary residence.

Those are the only two scenarios I can think of.

A home equity loan would also be reportable (and you would therefore need to collect the GMI) if the purpose of the loan is for home improvement.

B O L User - aren't you in Texas? If so, then the answer is going to be probably not ever. Since the Texas laws are so strange, you wouldn't want to make someone a non-HELOC home equity loan to purchase a 1 to 4 - you'd want a purchase loan. And you wouldn't want a severely restricted HE when you could write a much less restricted Home Improvement loan. Hope that helps!

Thanks Dan, Deena and Lestie...I am from Texas and now we do offer both HELOCs and HE...Thanks for you'alls repsonses.

So if the purpose of the HE in whole or in part to payoff or refi an existing mortgage, home improvement or purchase another dwellling, it is HMDA reportable and GMI must be collected...Correct?

Yes.

Thanks again Dan...

(A virtual crown and water is on the house.)

What if the borrower is a Primary resident and the co borrower is not a resident of the home and the is denied? Do you only collect the hmda information on the borrower?

I am not sure why this question was tacked onto a 20-year-old thread and what the previous discussion might have to do with your current question, but you gather demographic information from the credit applicants. Who owns the property or has to sign the security instrument is not relevant.