Just making sure I am thinking correctly-I have a loan scenario where the customer bought a house with money out to improve the interior of the home with the understanding that this loan would be temporary until the permanent financing. It was set up on approximately 3 months. We are now doing the permanent financing. It was my thoughts that this loan should be reported as a purchase - am I correct? We did not report the first temp loan because it was temp, and meant to be replaced by perm financing.

I believe that this loan now that it is being replaced with a permanent financing that you should report the permanent financing as a Refinance.

Refinancing-A refinancing is any dwelling-secured loan that replaces and satisfies another dwelling-secured loan to the same borrower. The purpose of the loan being refinanced is not relevant to determining whether the new loan is a refinance for HMDA purposes

This is like a bridge loan - should we not report the permanent financing of those as purchases?

I would report it as a purchase because the original purchase loan was temp financing.

I would also report as a purchase.

We too would report it as a purchase.