Skip to content
BOL Conferences
Thread Options
#176237 - 04/02/04 02:07 PM Line of Credit
Anonymous
Unregistered

We are doing a personal line of credit secured by the customers personal residence. I am aware that this is essentially a equity line of credit. Is it O.K. to give the Home Equity Credit Line Disclosure? No early documents besides this one would be needed, correct? Can you guide me to the reg that states this.

Thank you in advance.

Return to Top
Lending Compliance
#176238 - 04/02/04 03:05 PM Re: Line of Credit
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
226.5b & 6 will give you your disclosure requirements.

GFE Exemption 3500.7(f)

HUD Exemption 3500.8(a)

STD Exemption 3500.21 (a)
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#176239 - 04/02/04 03:07 PM Re: Line of Credit
OnTheEdge Offline
Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
You are correct that this loan is actually a HELOC. It requires the early HELOC disclosure AND the booklet, "What you Should Know About Home Equity Lines of Credit" at the time of application. HELOCs typically do not require any of the RESPA disclosures (GFE, Servicing Disclosure, HUD form). If your bank offers credit insurance on these products you'd need to provide the "at application" insurance disclosure.
_________________________
The opinions expressed are mine and do not necessarily reflect those of my employer.

Return to Top

Moderator:  Andy_Z