Yes, it is reportable. Also document the file if the borrower had bad credit and the bank is making the loan on the basis of the collateral.
During one FL exam there was a matched pair for HIP loans. Bank policy was not to lend for a recent (1 year) bankruptcy. HIP loan to white borrower approved and to black applicant denied. White borrower had $10K loan with $20K on-up CD. Black applicant was renting and wanted HIP loan to fix up his apartment.
(Documentation in file cleared the match - loans to bankrupt could be approved if amply and entirely secured.)
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Integrity. With it, nothing else matters. Without it, nothing else matters.