We have a loan that was a HELOC. Our customer is now renting the property so he applied for a commercial loan. Can we modify the open end deed to a closed end deed?
Does the Right of Rescission apply to a refinance of an existing HELOC with a new HELOC for a larger amount? The lender is the same institution, and there is new money.
If we offered a HELOC teaser rate in the past, does that APR need to be reflected in the Application Disclosure Historical Index Table? The Official Interpretation of 1026.40(d)(12)(x) 4. Amount of discount or premium. This uses the word "may."
We are considering using the LaserPro short form Change in Terms Agreement to make modifications to our unmatured HELOC agreements on a case-by-case basis. The modifications may include increasing/decreasing the credit limit, increasing/decreasing the margin, and potentially increasing/decreasing the floor. I am aware that increasing the credit limit will require a right of rescission. Are there any additional disclosure requirements that must be met based upon the proposed changes? I realize that a decrease in the margin and floor would be to the customer's advantage and as such should not require a written agreement signed by the customer. Would the LaserPro Change-in-Terms Agreement meet the Change-in-Terms Notice Requirements of Regulation Z since it would be signed by the customer?
We are currently using a 1003 for our HELOC applications. Our consumer lending team wants to discontinue the 1003 altogether for HELOCs. The loan officer would obtain much of the same information verbally and input the information directly into our loan origination system. The loan officer would verbally ask for GMI and obtain joint intent (when applicable.) Disclosure scripts would be provided for the loan officer, who would click a radio button indicating that the script had been read.
My research indicates that this method is permissible for both GMI and joint intent requirements. That said, is there any other reason why we would need a HELOC application form? Our consumer team is telling us that we're the only bank that uses a 1003 for HELOCs, and they're questioning the reason we need to continue the practice.
My institution is launching a new product in the upcoming months, HELOC's. We are currently building the policy and disclosures. It was asked of me if we were required to provide a grace period on payments for the HELOC. I was researching but could not find anything particular.
On Home Equity Term Loans, are we required to Verify Employment as part of the Ability to Repay?
My question pertains to HELOC transactions, which are open-end credit secured by real estate. Does a forbearance agreement require a disclosure if an Equity Line Credit Agreement and Disclosure comes after the original maturity? Is there any resource or link directing me to a regulation?
When can you collect an appraisal fee for a HELOC?
Is the homeownership counseling notice required for all HELOCs? I have seen the regulation, but I am also being told there was a loophole in the regulation that says this is not a requirement.