Hello!
I have a question, what if we do a loan renewal on a matured consumer mortgage balloon note. In this case, we will payoff the existing loan and will have a new promissory note that is interest only for a year due to financial hardship. Our plan is to resume amortizing payments when it matures next year. Would this be exempt from HMDA as a temporary loan or reportable as a refinance?

What you describe meets the HMDA definition of temporary financing--designed to be replaced by financing of a much longer term.

Raitchjay, does it make a difference in this situation if the new promissory note is designed to automatically convert to P&I payments at the end of the year of interest only? As opposed to this 2nd loan being interest only to be refinanced by a 3rd loan at P&I?

Yes, Melissa, what you describe would not be temporary financing. Since the OP said they planned to resume amortizing payments "when it matures next year", their scenario would be temporary.