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#2302460 - 10/15/24 03:43 PM Automatic Renewals & CRA Credit
Crazy Bank Lady Offline
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Crazy Bank Lady
Joined: Jun 2005
Posts: 112
Missouri
If a CRA reportable loan is written with an automatic annual renewal clause, can it be reported each time it renews?

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CRA
#2302461 - 10/15/24 03:58 PM Re: Automatic Renewals & CRA Credit Crazy Bank Lady
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 84,650
Galveston, TX
No. I think you are describing this:

However, a demand loan that is merely reviewed annually is not reported as a renewal because the term of the loan has not been extended.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2302466 - 10/15/24 04:13 PM Re: Automatic Renewals & CRA Credit Crazy Bank Lady
Crazy Bank Lady Offline
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Crazy Bank Lady
Joined: Jun 2005
Posts: 112
Missouri
The loan would not be written as "on demand". It would have an actual maturity date of one year from date of note with a clause written into the body of the loan that states that the loan can be extended automatically for an additional year after satisfactory review of the credit by the creditor. Is this still considered an on demand loan?

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#2302469 - 10/15/24 04:50 PM Re: Automatic Renewals & CRA Credit Crazy Bank Lady
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 84,650
Galveston, TX
If it has a maturity date in the note, then yes, you could report the renewal when the maturity date was extended.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2302470 - 10/15/24 04:56 PM Re: Automatic Renewals & CRA Credit rlcarey
Crazy Bank Lady Offline
100 Club
Crazy Bank Lady
Joined: Jun 2005
Posts: 112
Missouri
Thank you.

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