See page 12
Data collected in 2001 and subsequent years. An institution
should collect information about small-business and small-farm loans that it refinances or renews as loan originations. (A refinancing generally occurs when the existing loan obligation or note is satisfied and a new note is written, while a renewal
is an extension of the term of a loan.
However, for purposes of small business and small-farm CRA data
collection and reporting, it is no longer necessary to distinguish between the two.) When reporting small-business and small-farm data, however, an institution may report only one origination (including a renewal or refinancing treated as an origination) per loan per year, unless an increase in the loan amount is granted.
If an institution increases the amount of a small-business or
small-farm loan when it extends the term of the loan, it should always report the amount of the increase as a small-business or small-farm loan origination. The institution should
report only the amount of the increase if the original or remaining amount of the loan has already been reported one time that year.
For example, a financial institution makes a term loan for $25,000; principal payments have resulted in a present outstanding balance of $15,000. In the next year, the customer requests an additional $5,000, which is approved, and a new note is written for $20,000. In this example, the institution should report both the $5,000 increase and the renewal or refinancing of the $15,000 as originations for that year.
However, the institution may report the $5,000 increase together with the renewal or refinancing of the $15,000 as one origination for that year.
Lines of Credit
Data collected in 2001 and subsequent
years. Renewals of lines of credit for small-business, small-farm, or consumer purposes should be collected and reported, if applicable, in the same manner as renewals of small-business or smallfarm loans (see Q&A __.42(a)–5).
Institutions that are HMDA reporters continue to collect and report home equity lines of credit at their option, in accordance with the requirements of 12 CFR part 203.