GMI Collection - Purchase of Primary Residence

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Question:

Currently we have a customer applying for a six month loan, putting up their primary residence as collateral to purchase a primary residence. Current collateral customer's current primary residence is up for sale. In this instance would GMI be collected?

Answer:

This is a bridge loan. It is used to purchase a new primary dwelling. You need to collect GMI for Reg B. If you are a HMDA bank, you do not report these loans.

First published on BankersOnline.com 6/22/09