I thought I had this straight but when I was looking at this loan I got confused. This loan is a refinance of a previous loan that was for home improvement and was reported as a HI loan secured by the home. This loan is stated to be a refinance of the previous HI loan with additional funds advanced secured by the same home. The additional funds were used by the borrower to pay real estate taxes. My understanding of the definition of "refinance" for HMDA is that purpose does not matter, what matters is whether the original and the new loan are both secured by a dwelling, which in this case it is. It also states the use of the new money is not relevant unless the new money is to be used for HI or purchase which would then change the reporting from refi to HI or purchase. But since this loan started out being classified as a HI loan, wouldn't we still report it as a HI loan and not a refinance?