Do I have to disclose what my second morgage money is used for?

Typically, most financial institutions would inquire regarding the general purpose or intent of the funding from either a 2nd or HELOC's. however, beyond generalities, they really aren't looking for specifics (like I'm going to buy a brand new 2012 Corvette of Audi R8). they are MORE interested in getting a level of assurance that the additional $$$'s isn't being used to fund illegal, fraudulent or illicit activities. Otherwise, this disclosure requirement isn't too bad to comply with. Hope this helps! BTW, I'm the same individual who answered your earlier question regarding what your role would entail on the Audit Committee! Fyi, I'm actually a retired and previous Fortune 100 CPA/MBA here in California! All the best now! :)

The bank will ask. Lying could be considered fraud.

If you want to go to Vegas and gamble the money, they will not make you the loan.