Home Mortgage Disclosure Act (HMDA)/Reg C

Can you define "loans purchased"?

There is no specific definition regarding a "purchased loan" or "purchasing entity" under Regulation C; however, generally this refers to a loan bought/acquired by an entity that did not make the credit decision for granting the original loan request. For information regarding the differences between originating a loan and purchasing a loan, refer to the commentary provided in the regulation (citations are provided below).

Citation(s):Commentary ¶4(g)-1ii; Commentary ¶4(g)-2 thru -5