Loan Ballooned and Renewed: Reportable?

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Question:

I have a loan from 2008 that ballooned and renewed, but was given new money. The new money will be used to install water and sewer and to reimburse paid expenses for repairs. Is this a reportable loan?

Answer:

If it was truly renewed and not refinanced, then it is not reportable. If a new note replaced the old loan, this is reportable as a Home Improvement loan, since the new money was used for HI purposes.

First published on BankersOnline.com 7/19/10