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#1145906 - 03/16/09 09:23 PM Reg Z - 226.32(d)(1)(i) Baloon Payment
ABCAM Offline
Junior Member
ABCAM
Joined: Apr 2007
Posts: 40
Oklahoma
This says "Balloon Payment. For a loan with a term of less than five years a payment schedule with regular periodic payments that when aggregated do not fully amortize the outstanding principal balance" This concerns me because we have a loan that we are looking to book which is a 15 year adjustable amortization schedule, but 3-year fixed. Our customer is wanting to come in at the end of the 3 years and refinance to hopefully get a better rate, terms, etc. Would we consider this a balloon, or simply a 15 year ARM with a 3 year fixed rate? Any help is appreciated.

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#1145934 - 03/16/09 10:32 PM Re: Reg Z - 226.32(d)(1)(i) Baloon Payment ABCAM
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Joined: Dec 2002
Posts: 4,597
SC
If the loan is subject to HOEPA then you have an issue because you have a 3 year loan with a balloon payment.
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#1146700 - 03/18/09 12:34 AM Re: Reg Z - 226.32(d)(1)(i) Baloon Payment Cowboys Fan
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
What is the term of the original loan - 3 years or 15 years?
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#1146937 - 03/18/09 03:28 PM Re: Reg Z - 226.32(d)(1)(i) Baloon Payment rlcarey
ABCAM Offline
Junior Member
ABCAM
Joined: Apr 2007
Posts: 40
Oklahoma
We dont know yet. We are weighing our options and going from there.
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