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.

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.

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,