So, you are saying that a loan to purchase the interest of another owner is a purchase transaction under HMDA? I am not sure I agree. It would be a refinance under TRID and a refinance in the secondary market and would be priced as a cash-out refinance, if selling in the secondary market or if you had such pricing internally.
I would think such a transaction under HMDA would be treated similarly as would an assumption in which they are already an owner of the property. They are not purchasing a dwelling; they are buying out another owner.
" On the other hand, a transaction in which borrower B, a successor-in-interest, assumes borrower A's existing debt obligation only after acquiring title to borrower A's dwelling is not a home purchase loan because borrower B did not assume the debt obligation for the purpose of purchasing a dwelling."
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