Report Which Prop on HMDA LAR? (Equity on Primary)

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Question:

Applicant wants to take equity out of their primary residence at 123 Main Street in order to purchase a secondary residence at 456 Washington Street, using the Main Street as Collateral. Which property should we report on the HMDA LAR?

Answer:

See page D-12 of the HMDA: Getting it Right guide:

Property location ”multiple properties (home purchase/refinance of home purchase).

For a home purchase loan, an institution reports the property taken as security.

First published on BankersOnline.com 5/20/13