We are making a loan to an individual to pay off their existing home mortgage held by a family member. When our borrower purchased the home, her parents loaned her the money to buy it and took a mortgage on the home and filed the mortgage for record. My opinion is that this a HMDA reportable loan as a refinance, we are replacing a dwelling secured loan with another dwelling secured loan to the same borrower. I have someone arguing that a mortgage held by a family member is not to be considered as refinance. I read nowhere in HMDA GIR that differentiates family from any other mortgage holder.
Your thoughts please.

"I have someone arguing that a mortgage held by a family member is not to be considered as refinance."

If they are so sure about HMDA, why do "they" not point to that part of the regulation instead of sending you on some wild goose chase??

Maybe they are thinking about TRID. It would mostly likely not a be a refinancing under TRID, but considered a home equity as the original loan was likely not subject to Regulation Z.

You need to review the OI to 1003.2(d) & (o) - Comments 2. Then make a determination if the parent loan meets the definition of an extension of credit.