Refi w/1-4 Family Collateral-HMDA Reportable?

Question:

We use a cross collateralization-cross default clause in all commercial loans. If collateral includes 1-4 family residences, in a refinance, is the loan HMDA reportable?

Answer:

If the old loan and new loan both have a dwelling as collateral, it's a "refinance" for HMDA. It doesn't matter if there's a cross-collateralization clause or not. If you foreclose, you have a dwelling. You can't have the collateral for security purposes, but not have it for disclosure/reporting purposes.

First published on BankersOnline.com 8/20/12