We have an employee mortgage loan that was pre-TRID. It has about 7 years left to go and the balance is about $40,000. The employee is struggling to make the payment and we aren't able to do a refinance due to we would lose our mortgage.
Loan officer is wanting to do a change in terms to lower the payment but that would cause a balloon payment at the end. We have not disclosed a balloon payment since it was termed out when the loan was originally done.
I'm not in favor of the change in terms but wanted to get others opinions.

Not sure what your question might be?

Is it an issue to modify (do a change in terms) a loan from a term loan, lower the payments which will make it a balloon note (No disclosures have been given about a balloon note since it's been a term note from the beginning)

As long as the original obligation is not replaced no disclosures are required. It also sounds like a workout. See 1026.20(a).