We have a client that has a home (prop A) free and clear, purchased for cash. They refinance prop A to extract cash out to payoff the lien on their second home prop B. Our collateral is prop A.

Is this cash out refi reportable as a refinance OR since it is cash out no lien satisfied (at least on our colalteral prop A) is it NOT reportable.

Both homes are titled exactly the same and our borrowers are the same owners of both.

Any help appreciated.
Thanks!

Purpose: payoff existing dwelling secured loan (B). Collateral: dwelling (A). Sounds like a refi to me (satisfy and replace).