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#1089149 - 11/28/08 06:25 PM Overdrawn account and mortgage
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
We have a customer who had had an overdrawn account for some time now - the officer wants to charge the overdraft to their home mortage (non-purchase money).

My first instincts are NO as this would be an extension of credit and an increase in the security - but is there a loophold that would allow for this.

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Lending Compliance
#1089160 - 11/28/08 06:58 PM Re: Overdrawn account and mortgage Tryin-2-Comply
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,637
Galveston, TX
I would not suggest it. The advance would have to be subject to the right of rescission and unless your deed/mortgage had a future advance clause it would really open a can of worms from an unfair and deceptive practices perspective.
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#1089188 - 11/28/08 07:28 PM Re: Overdrawn account and mortgage rlcarey
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
Thank you for the response - definately don't want any of those UDAP issues....thanks again.

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