We have a construction loan that is maturing. But, we need to extend it for another 90 days. We are wanting to do a modification agreement since it is still prior to maturity. When doing a modification to extend the maturity date, do you have to give any pre-disclosures/application disclosures?

Also, at closing, since we will have a processing fee, what all disclosures are necessary?

Since there is no new money (only extending the maturity date), do we have to amend the mortgage and/or pay any taxes on the mortgage?

Thanks for your help!

Modification do not require new disclosures. Your modification agreement should identify the modification fee.

Dan, we have a new construction-perm product that will have a modification agreement at the end of the 12 months construction period. I am reviewing a package for the first loan and the modification fee is disclosed on the GFE and HUD I am told we will hold the money until time for the modification.

Based on your answer above, I am thinking this is not correct. Can you direct me to RESPA or Reg Z where this is discussed?

Thanks so much - the closing is today so a quick reply is greatly appreciated!

How do you have a construction/perm loan if the terms of the permanent loan are not established until the end of the construction phase? How do you provide the appropriate disclosures at the time of the one-time close? You need legal assistance.

The terms and interest rate for both the construction period and permanent phase are established up front; the TIL appears to be accurate based on the new interim rule where the interest rate and payment table disclose only the permanent phase (with a statement disclosing the interest payments during the construction period). I am equally confused why we need a modification agreement when the construction phase is over.