I need confirmation as to whether I am understanding something correctly. I am newly in charge of reporting the CRA data and other staff at the bank and I are interpreting things differently. Am I correct that renewals and refinances are now considered one and the same and are reported as long as there is the loan is not double counted in one calendar year? We have, at one time, only reported renewals if there was new money or if the note number changed. What I am reading leads me to beleive that we are short-changing ourselves.
For example, If we made a loan to ABC, Inc. for $100,000 in 2005, and then we do a renewal of that note in 2006, would we report it just as if it was a new loan? Would it matter whether or not a new note was signed? Would matter whether or not a new note number was used?
Also, if we made a loan to XYZ, Inc. in 2005 for $50,000 and then did an increase to $60,000 in 2006, my take is that we would have two options. Either to report two loans, one for the renewal of $50,000 and another for the increase of $10,000, OR, to just report one loan of $60,000. Is that correct?
I am sorry, that this is probably elementary to all of you but I really need confirmation on this issue. Thanks.
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