This covers an increase, however the process is the same without an increase.
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 a single origination of $20,000.
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