HMDA Small Filers: Loan Purpose

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