Four scenarios... lots of second guessing

1. home improvement line of credit, secured by 2nd mortgage on primary residence. Key issue: it is a line of credit - 12 months interest only payments. At end we will probally amortize if he doesn't pay out.

2. home was purchased and renovated (purch $350,000.00 - improvements $500,000.00) with a draw loan. We redid loan one in 2005 to increase line of credit - new promissory note, and we renewed the balance as a 6 month single pay to give them time to sell. Key confusion - were the lines of credit reportable??

3. No mortgage on 6-plex. One individual does loan to buyout two siblings. Key confusion - purchasing "full interest"

4. Similiar to another thread, but customer borrows to purchase a promissory note. Sues on note and gets property. We do new promissory note secured by property. Key issue - previous loan not dwelling secured.
Thank you

1. Open-end lines of credit are optional reporting regardless of their purpose.

2. See #1 for the lines of credit. The single pay note fits the "splash & dash" scenario in the Q&A. It would be a reportable loan.

3. We would not report this loan. We report these as refinancings and it does not meet the definition. However, some will report as purchases. The key is to report them consistently.

4. Not reportable. Does not meet the definition of a refinancing or a purchase.

does the fact the lines of credit are short term, not open end matter. The Q & A did not specify it just stated "lines of credit"

Draw loans are reportable unless they meet one of the exemptions. I would have to guess that the original draw loan was made to purchase and renovate the property and was to be repaid from he sale of the property (you just ended up having to renew a couple of times). If this guess is correct then it would have been a reportable loan under the new Q&A.