This sounds to me like it's simply re-doing the loan to cover cost overruns.
1. Is the home still in the construction phase?
2. Is the money being paid to contractors or is it being used to reimburse out of pocket expenses to the borrower?
Just a FYI, this is why we don't report the loan on the LAR until the loan enters the permanent phase.
The opinions expressed are mine and they are not to be taken as legal advice.