A couple of regs talk about "satisfied & replaced". Does that mean a new note is made or does it mean a new note plus a new mortgage is made?

Depends on the reg and your regulator. Can you be more specific?

If you are referring to HMDA and the definition of "Refinancing" for 2004, then the Q & A states "Refinancing-Satisfaction of lien; The satisfaction of a lien is neither necessary nor sufficient to creat a reportable refinancing. The credit obligation must be satisfied and replaced; it is not relevant whether the lien is satisfied and replaced."

Ski, True, unless you are an FDIC bank. The current party line is, "it is not a refinance (for HMDA) unless you cancel and file a new lien." A search will reveal more discussion on this topic from several FDIC banks. Although this will probably change; for now this is what examiners will be looking for.

SoccerMom, Thanks for the information.

Please remember that HMDA is not an FDIC regulation, but a FRB regulation. Personal conversations with Dan Sokolov, FRB attorney, have clarified that the FDIC is incorrect in their interpretation of "refinance" as it applies to liens and that all banks subject to HMDA should follow the guidance of the FRB on the HMDA web site.

I have sent Dan some of the interesting information that has been posted on BOL lately regarding this. He is aware of the FDIC's "different" opinion on this matter.

By the way, my bank is FDIC.