Answer:
A “simple” example is the definition used for balloon loan. For any consumer or business purpose loan, open or closed end, HMDA will use the definition from the integrated disclosures of Regulation Z (TRID). This means that a balloon loan is defined as any loan with a payment that is more than two times a regular periodic payment. This will be a surprise to commercial lenders.
Learn more about Kathleen’s webinar HMDA Rule Revisions: Deep Exploration .
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