A participant who has taken out a loan before getting a hardship withdrawal has now requested another loan? Does anyone see a problem with that? Particularly since the rule is that all loans must be taken before a hardship withdrawal is made.

Depends on the document. Does it limit how many loans you can have?

If you are concerned about the remaining vested balance securing the original loan, It is only required that the 50% collateral be in the account on the date of the loan. (so it was OK then if he first took a loan of 50% and then took more of his account as a hardship distribution later on)

As long as he does not violate the 50% loan limit (as of the date of the loan issuance) or any plan rules limiting the number of loans it should be OK??