Skip to content
GeoDataVision
Thread Options
#2167670 - 03/12/18 06:47 PM HELOC or no?
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
I apologize if this sounds easy but would a loan for a line of credit, secured by their home with an unknown term right now be considered a HELOC?
Last edited by mdog76; 03/12/18 06:56 PM.
Return to Top
Lending Compliance
#2167674 - 03/12/18 07:15 PM Re: HELOC or no? mdog76
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
Just learned customer plans to draw the money out and repay within 12 months.

Return to Top
#2167678 - 03/12/18 07:25 PM Re: HELOC or no? mdog76
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
You do realized you have to have a program disclosure for 'each' kind/term HELOC you offer handed to the customer at time of application. Are you really willing to make these up on the fly?
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#2167681 - 03/12/18 07:33 PM Re: HELOC or no? mdog76
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,965
Bloomington, IN
loan for a line of credit

Will the loan be closed-end or open-end?

Is it a consumer purpose?
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2167682 - 03/12/18 07:37 PM Re: HELOC or no? mdog76
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
Getting pieces as I go along. Its a one time draw down so its closed and yes its consumer. We are not set up to HELOC any way, just wondering if this situation would be a HELOC.

Return to Top
#2167683 - 03/12/18 07:39 PM Re: HELOC or no? mdog76
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,965
Bloomington, IN
It would have to be open-end credit to be a HELOC.

Section 1026.40—Requirements for Home-Equity Plans

1. Coverage. This section applies to all open-end credit plans secured by the consumer's dwelling, as defined in §1026.2(a)(19), and is not limited to plans secured by the consumer's principal dwelling. (See the commentary to §1026.3(a), which discusses whether transactions are consumer or business-purpose credit, for guidance on whether a home equity plan is subject to Regulation Z.)
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2167690 - 03/12/18 08:04 PM Re: HELOC or no? mdog76
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Its a one time draw down so its closed and yes its consumer.

No, it's not, if they are drawing it all at once as I believe was originally stated.

It's simply a 12-month loan subject to ATR, TRID, etc.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top

Moderator:  Andy_Z