Compliance Alliance Question of the Week

Question:
We have a question on a loan that is a refinance of a purchase of a second home and is adding funds to pay off personal credit cards. Should be report the HOEPA Status as "Code 3 - NA"?
 
Answer:
Assuming the loan is just secured by the second home and is not also secured by the principal dwelling, then yes, it should be reported as "Code 3 - NA" like you said. The reason for this is that HOEPA only applies to:
...a high-cost mortgage, which is any consumer credit transaction that is secured by the consumer's principal dwelling...
https://www.consumerfinance.gov/policy-compliance/rulemaking/regulations/1026/32/
 
So the HOEPA rules do not apply to this particular loan and, thus, it would be reported as not applicable for HMDA purposes.