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#1714164 - 06/26/12 03:45 PM Consumer Requested HELOC Freeze
MMontjoy01 Offline
Junior Member
MMontjoy01
Joined: Apr 2008
Posts: 47
NC, USA
Ok. Situation is, a wife and husband are separating and they are both on the note for the HELOC. The wife is requesting that a freeze be put on the credit availabilty. Because of Reg Z we are not sure how to handle this situation. Our note does say that We may temporarily prohibit the borrowers to obtain additional advances or reduce the credit limit during any period in which any of the following are in effect. One listed is that Any Borrower requests a suspension of credit privileges. Any guidance is appreciated!

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Lending Compliance
#1714169 - 06/26/12 03:51 PM Re: Consumer Requested HELOC Freeze MMontjoy01
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,762
Bloomington, IN
Reg Z allows you to suspend the account under these circumstances as long as your loan agreement allows it. Review the Commentary to 1026.40(f).
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1714242 - 06/26/12 05:11 PM Re: Consumer Requested HELOC Freeze MMontjoy01
MMontjoy01 Offline
Junior Member
MMontjoy01
Joined: Apr 2008
Posts: 47
NC, USA
Thanks Dan! That is a big help!

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