Again, if you didn't want to accept that risk you could have just sold the stocks instead of taking a loan.
This isn't much different from taking a loan against a house, and then due to external circumstances the house drops in value, say a landfill next door. You're not getting back the property tax you paid.
I could have reasons for not wanting to sell it. Maybe I don't want to boost up my income for the year and be subject to even more taxes or loss of benefits (i.e. ACA). Or maybe I want to keep the dividend stream.
It any case it's already overcomplicated, and I don't think we need to make it moreso by giving the govt another opportunity to take yet another slice of a transaction they had nothing to do with.
Not to mention, the lender that gave me a loan has to give the govt a slice of their income, which comes from me.
> This isn't much different from taking a loan against a house
The difference is that houses rarely lose 100% of their value. Normally they hold their value or thereabouts.
If you don't want to gamble then sell the stocks, that way you are not surprised by later changes.