First, do you choose to report unsecured HI loans? If yes, why? Sorry, snarky response... :-) I've been too confused by temp financing today, so I'll let someone else chime in who reports unsecured HI loans on the temp financing exemption question.
But regarding the second loan, it does not sound reportable - doesn't sound like any funds going to a purchase, and not a refi if not paying off another dwelling secured loan, and it's not HI if the funds aren't going to fund future improvements. My understanding is it is not a HI loan if the funds are going to "reimburse the borrower" for improvements already made.