Need a little help -
Customer applied for a Home Equity loan (we are in TX btw) to make improvements to his primary residence. After pulling credit and getting a preliminary loan balance, the L/O realized the customer did not have sufficient equity in the home to let him make the amount of improvements he was requesting. The LTV would have been sufficiently over 80%.
Therefore the L/O counteroffered and explained we could do a small short term loan that was not secured by the dwelling to allow the customer to make the home improvements. The customer agreed and we made that loan.
Later on, after the improvements were made and we could get a new appraisal that was considered "as is" we made the customer a 2nd lien Home Equity to refi the small consumer debt.
So.... would you report the initial Home Equity request or not since it was counteroffered and accepted by the borrower? I have already reported the consumer Home Improvement loan.
Can't is not an option.