I know this has been asked before, but I am dense today - If we have a loan, originated in 1998 for 100,000, paid down and in 2004 $50,000 was advanced, without changing the loan term, would that be reportable? And for how much? $50,000, the balance at the time of the advance??

A modification was done, increasing the payment amount.

Thanks!

I'm not reading this clearly so I'll guess what you're saying.

You have a $100M Loan that was paid down to a balance of $50M (outstanding in 2004) at which time you advanced an additional $50M? If this is the case, report $100M. (The balance at the time of the modification and extension).

Or did you pay off the $100M all together and advance another $50M for some goofy reason (verses doing a new loan). If the total extended credit in 2004 was only $50M, report that amount.

I think I answered that both ways so you should have something to go on

The first example you mentioned - outstanding balance $50,000 and modified to increase the payments, not the term, with a "readvance" of $50,000.

The thing that's throwing me is that the loan term hasn't been extended.

Good gravy beat your lenders. What a stupid way to provide a loan. You did provide an additional $50M in credit to the client during the year, so go ahead and report that $50M. As you mention, you didn't increase the term on the old debt, (and that was pre 2004 right?) so I'd leave that one alone and document the heck out of the file to make this clear in a data integrity check.

And then go back and beat your lenders up. Close out that old debt and open a new one, or open a new credit for the additional debt. Extending new money on an old loan is just plain stupid underwriting.

Yes, and many other interesting "old school" practices I'm finding in my treasure hunt!