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#2002610 - 03/19/15 02:49 PM Extension Agreement
complynewbie13 Offline
100 Club
Joined: Dec 2014
Posts: 146
Minnesota
We use an extension agreement created by Bankers Systems, Inc. for occations when a person needs/wants to exend a payment or bump out the maturity date of a loan for a short time. I was asked by our loan officers if they could take an extension request over the phone and not get a signature on the form. They would instead document that it was done over the phone then just initial and date it. We would mail a copy of the form to the customer. Does anybody else do this? We are concerned that this would be frowned upon. I am new to compliance and don't know if a signature is regulated anywhere, or if it is just a best practice to get signatures. We would obviously use this as a last resort, but sometimes a customer is on the road and unable to get into the bank until a later date.

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Lending Compliance
#2002647 - 03/19/15 04:20 PM Re: Extension Agreement complynewbie13
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,630
Bloomington, IN
The required documentation for payment deferments are a matter of state law.

Keep in mind payment deferments are modifying the legal agreement. I for one would not allow any modification without signed documentation.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#2002663 - 03/19/15 05:08 PM Re: Extension Agreement complynewbie13
complynewbie13 Offline
100 Club
Joined: Dec 2014
Posts: 146
Minnesota
Ok. I will look into the state law so see what it says. Perhaps the best thing to do is proceed with caution and continue to make it a requirement that the customer sign the document.
Thanks,

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