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#2289062 - 09/25/23 10:13 PM Renewal with New Money
MyThirdLogin Offline
Junior Member
Joined: May 2019
Posts: 27
Seemingly very basic question here. But can you have a 'renewal' with new money extended and not have it be considered a refinancing? This would be a simple modification agreement that could possible extend the term and increase the loan amount. With the assumption that the original loan or line was HMDA reportable and the 'renewal' would have the same collateral. I am just struggling with the 'new money' (i.e. $30k increased to $50k) and not accounting for that in the reporting.

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#2289068 - 09/26/23 10:39 AM Re: Renewal with New Money MyThirdLogin
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,010
Galveston, TX
A modification does not satisfy and replace an existing loan. The original obligation continues, even if you change other terms or add additional money.

Below is the definition of a refinance. You should also read the accompanying commentary.
 
1003.2(p) Refinancing means a closed-end mortgage loan or an open-end line of credit in which a new, dwelling-secured debt obligation satisfies and replaces an existing, dwelling-secured debt obligation by the same borrower.
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