While I have seen different versions of this scenario in forum history, for some reason, I don't see this scenario and my perspective specifically addressed. We have a borrower who is the sole heir to their parent's home, which has a debt/lien tied to it. They chose to refinance the debt that was in their parent's name to put the obligation into their own name. This would also officially put their name on the deed as I have checked to confirm it was not on it prior. All that being said, would the Loan Purpose be reported as a 1-Purchase, 31-Refi, or 4-Other...or would the application not be reported on the HMDA LAR at all. I saw in the past how it was argued to be a 31-Refi and others saying it does not meet the definition of purchase or refi...but most arguments were from a time where the Loan Purpose, 4-Other, did not exist. Has there been any regulatory commentary on this situation. Where are most of you at? What is the Loan Purpose? Thanks ahead of time for all your helpful incite.

An assumption is a Home Purchase Loan when: (a) the assumption is a Closed-End Mortgage or Open-End Line of Credit; (b) the Financial Institution enters into a written agreement accepting a new borrower as the obligor on an existing obligation; and (c) the purpose is to finance the new borrower’s purchase of the Dwelling securing the existing obligation. An assumption is not a Home Purchase Loan if the new borrower assumes the existing borrower’s obligation after acquiring title to the Dwelling securing the existing obligation because the purpose is not to finance the new borrower’s purchase of the Dwelling. The assumption would be reported using a loan purpose other than Home Purchase Loan. Comment 2(j)-5.

So, that leaves you with Other since they already acquired the property.