One of the more confusing aspects of HMDA has to do with bridge loans. While the regulation addresses bridge loans, it never actually defines them. Despite this, bridge loans are generally understood to be the gap financing between the purchase of a new home and the sale of an old home. HMDA does, on the other hand, clarify the differences between temporary financing (not reportable) and short-term financing (reportable). Ultimately, the lack of guidance opens the door for inconsistency because what one lender might consider to be a bridge loan could be something else to another lender.
Dave explains more in the video.
Published 2026/05/18