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Temporary Financing

Question: 
How can we accurately determine if a loan is temporary financing or not?
Answer: 

HMDA considers two situations to be temporary financing.
1. A loan that will be replaced by permanent financing, including renewals when the anticipated repayment continues to be permanent financing, and
2. A loan to a builder to construct a dwelling that will be sold to a third part. This temporary financing exclusion also includes renewals provided the anticipated repayment continues to be sale of the dwelling.
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First published on 09/29/2019

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