We had an application from a borrower to increase the outstanding balance on an existing closed end mortgage loan for the purpose of equity recapture to purchase another residential investment property. . The request was withdrawn by the borrower before a decision was made. Had the loan been approved and closed, the increase in the loan amount would have been documented with an Allonge to the existing note. All documents in place - recorded mortgage and assignment, for example - would have remained in place It is unknown whether a payment or maturity change would have been added to the Allonge, but the existing documents would have remained in place.

I believe this is not HMDA reportable as this would not have refinanced a debt, the allonge may have changed the payment and possibly the maturity, but all other document items evidenced in the note would have remained, the mortgage would have remained, the loan number would have remained the same..

Am i correct, or is this wishful thinking?

I agree, as it sounds like a modification to me. An allonge would not satisfy and replace an existing dwelling-secured debt obligation.

thank you, RL