Is there any reason we can not do a modification to increase the loan amount on a HELOC? According to the Official Interpretations for 1026.40,as long as the consumer agrees in writing to the change before expiration, it looks as if you can. I have a lender that thinks there was a change, possibly having to do with the new appraisal rules, regarding impact on the customer even though it's their request. Any thoughts? Thanks!

As long as there is no state law prohbiting this then you can modify the HELOC to increase the LOC. Just remember the amount of the increase in the LOC is subject to rescission.

Thanks Dan. That's the only thing I could come up with, but wanted to make sure I wasn't overlooking anything. We are in Kentucky...if anyone knows of any state specific prohibition. Thanks again!

Check with your legal counsel. You might try a post in the Kentucky forum. Typically.....I think........a title company won't insure the lien if you're trying to do something your not 'spose to. But that might vary from state to state also.....not too knowledgeable regarding title insurance.