HMDA refi vs home improvement
If the purpose for a cash out refinance is to pay off the mortgage on an investment property, is the the transaction to be reported as a refinance or a home improvement?
For reporting purposes the transaction should be reported as a "refinance". I'm not sure why you might think that it should be classified as "home improvement", is part of the proceeds also going to be used for home imrovement purposes? If so, then the loan would be reported as home improvement based on the transitional rules which state that home improvement would trump refinance when reporting the loan.