No, a new debt obligation is not required to be secured by the same property that secures the existing obligations it is satisfying and replacing to be considered a refinancing under Regulation C — provided that both the existing and new obligations are dwelling-secured.

Under Regulation C, a “refinancing” means “a closed-end mortgage loan or an open-end line of credit in which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower.” There is no requirement that the dwelling securing the new debt obligation be the same as the dwelling securing the existing obligation that is being satisfied and replaced. Additionally, a dwelling “is not limited to the principal or other residence of the applicant or borrower.”

Consequently, we believe that a new, dwelling-secured debt obligation that satisfies and replaces two or more existing dwelling-secured obligations would be considered a refinancing for HMDA purposes, whether or not the same dwellings are used as security for the new and existing obligations.

For resources related to our guidance, please see:

• Regulation C, 12 CFR 1003.2(p) (“Refinancing means a closed-end mortgage loan or an open-end line of credit in which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower.”)

• Regulation C, Official Interpretations, Paragraph 2(p), Comment 5 (“Section 1003.2(p) provides that, to be a refinancing, a new debt obligation must satisfy and replace an existing debt obligation. Where two or more new obligations replace an existing obligation, each new obligation is a refinancing if, taken together, the new obligations satisfy the existing obligation. Similarly, where one new obligation replaces two or more existing obligations, the new obligation is a refinancing if it satisfies each of the existing obligations.”)

• Regulation C, 12 CFR 1003.2(f) (“Dwelling means a residential structure, whether or not attached to real property. The term includes but is not limited to a detached home, an individual condominium or cooperative unit, a manufactured home or other factory-built home, or a multifamily residential structure or community.”)

• Regulation C, Official Interpretations, Paragraph 2(f), Comment 1 (“The definition of a dwelling is not limited to the principal or other residence of the applicant or borrower, and thus includes vacation or second homes and investment properties.”)