When is GMI Required?

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Question:

If a customer is using his unencumbered personal residence to purchase a vacation home, is GMI required?

Answer:

If you are subject to HMDA reporting, this would be a home purchase and GMI would be required. If you are not subject to HMDA reporting, then you would not collect GMI under Reg B requirements, because the loan is not for the purchase or refinancing of the purchase for the borrower's primary residence.

First published on BankersOnline.com 7/05/10