Skip to content
BOL Conferences
Forums · Active Threads · Forum Rules · Mark All Read · Log In
BankersOnline.com Forums Banker Forums Lending Compliance capitalization of interest
Thread Options
#1818355 - 05/29/13 08:20 PM capitalization of interest
Patricia Offline
Gold Star
Joined: Mar 2011
Posts: 335
Kansas
Is capitalization of interest on a higher priced mortgage loan prohibited? I am thinking this practice would result in negative amoritzation????

Return to Top
Lending Compliance
#1818534 - 05/30/13 01:55 PM Re: capitalization of interest Patricia
Patricia Offline
Gold Star
Joined: Mar 2011
Posts: 335
Kansas
bump

Return to Top
#1818545 - 05/30/13 02:07 PM Re: capitalization of interest Patricia
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,351
Define "capitalization of interest."
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#1818572 - 05/30/13 02:31 PM Re: capitalization of interest Patricia
Patricia Offline
Gold Star
Joined: Mar 2011
Posts: 335
Kansas
Past due interest.

Return to Top
#1818575 - 05/30/13 02:32 PM Re: capitalization of interest Patricia
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,351
What? Adding it to the principal during the term of the loan? Or adding it to the loan at renewal?
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#1818591 - 05/30/13 02:50 PM Re: capitalization of interest Patricia
Patricia Offline
Gold Star
Joined: Mar 2011
Posts: 335
Kansas
adding it to the principal balance and extending the term. I think we can do a modification. Right?

Return to Top
#1818775 - 05/30/13 06:20 PM Re: capitalization of interest Patricia
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,364
Galveston, TX
Check state law and your safety and soundness regulators are going to be all over you like you know what.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1818777 - 05/30/13 06:23 PM Re: capitalization of interest Patricia
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,656
The Swamp
What ^^^ said.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top

Moderator:  Andy_Z