A construction only SFR loan was subsequently permanently financed via a Renewal Agreement. New terms are for a 5/5 ARM for 30 years. TRID disclosures were provided.

The agreement states, "This Note is issued, not as a payment toward, but as a renewal and extension of, the obligations of Borrower to Lender pursuant to that certain Note dated XX.XX.XXXX in the principal amount of $XXX,XXX.XX (together with all prior amendments thereto or restatements thereof "Prior Note"). This Note shall not be construed as a novation or extinguishment of the unpaid balance due in the sum of $XXX,XXX.XX."

Is this loan reportable as a Purchase transaction for HMDA purposes since it is the permanent financing of the construction loan or is it not reportable because it is a renewal, not a refinancing, even if it is the permanent financing?

What about the permanent financing of a temporary loan to purchase and renovate a SFR executed using this Renewal Agreement? HMDA reportable?

Would a loan that was not any type of temporary financing that was renewed under this Renewal Agreement be exempt from HMDA reporting?

No modification or renewal of a note is reportable under HMDA.

If the original loan was not designed to be replaced with long term financing, the original loan is not temporary and would be reported.

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. For example:

iv. Lender A extends credit to finance construction of a dwelling. The loan automatically will convert to permanent financing extended to the same borrower with Lender A once the construction phase is complete. Under § 1003.3(c)(3), the loan is not designed to be replaced by separate permanent financing extended to the same borrower, and therefore the temporary financing exclusion does not apply.