---
title: "HMDA Small Filers: Loan Purpose"
description: HMDA - Loan purpose codes include purchases, refinances, home improvements and other. Majority does not win.
---

[Banker's Compliance Consulting Blog ](https://blog.bankerscompliance.com/en)

# [HMDA Small Filers: Loan Purpose](https://blog.bankerscompliance.com/en/hmda-small-filers-loan-purpose)

 Written by [David Dickinson](https://blog.bankerscompliance.com/en/author/david-dickinson) | Mar 10, 2023 7:21:04 PM

HMDA applies to applications for the purpose of Home Purchase, Home Improvement, Refinancing, or Other (aka consumer-purpose Home Equity). When you get around to reporting the loan purpose on your HMDA-LAR; however, there are two codes related to Refinancings. They are Code 31 Refinancing and Code 32 Cash-Out Refinancing. So, what’s the difference?

David explains more in the video.

 

Video Highlights:

- Loan purpose codes include purchases, refinances, home improvements and other.
- Majority does not win when it comes to determining loan purpose.
- If any money is used for purchase, then it's a purchase even if some money will be used for improvements.

Published  
2023/03/10

[View full post](https://blog.bankerscompliance.com/en/hmda-small-filers-loan-purpose)

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