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#2184606 - 07/09/18 03:47 PM Modification / Refinance
Lea Scott, CRCM, CAMS Offline
Member

Registered: 12/02/15
Posts: 91
If a fixed-rate, balloon note lot loan is maturing next month, and we want to do a modification to extend the maturity another 10 years, AND change the rate from, for example, 4.00% to 4.5%, do we need to issue new TRIDs? Thank you.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2184625 - 07/09/18 04:18 PM Re: Modification / Refinance [Re: Lea Scott, CRCM, CAMS]
RR Joker Offline
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Registered: 11/15/02
Posts: 19962
Loc: The Swamp
It depends. A true modification does not replace the original note. If that's the case, then no, it's not subject to TRID.
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My opinion only. Not legal advice.

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#2184627 - 07/09/18 04:21 PM Re: Modification / Refinance [Re: RR Joker]
Lea Scott, CRCM, CAMS Offline
Member

Registered: 12/02/15
Posts: 91
What if we want to modify the note, PRIOR TO MATURITY, so it amortizes out after 10 years at a fixed rate that is different from the current rate? For example, consumer purpose lot loan, 3 year, fixed rate balloon note, at 4%, matures on 8/1/18. On 7/1/18, we modify the note so it is now 4.5%, re-amortize the existing balance so it pays out in 10 years. Thoughts? Thank you.

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#2184632 - 07/09/18 04:28 PM Re: Modification / Refinance [Re: Lea Scott, CRCM, CAMS]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 19962
Loc: The Swamp
It needs to be done prior to maturity [legal issue/check with attorney otherwise]. There is no written restriction on changing a rate, only on adding/removing a VR feature.


Edited by RR Joker (07/09/18 04:28 PM)
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#2184634 - 07/09/18 04:29 PM Re: Modification / Refinance [Re: Lea Scott, CRCM, CAMS]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 19962
Loc: The Swamp
I'm not seeing any difference between your two posts, however.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#2184637 - 07/09/18 04:30 PM Re: Modification / Refinance [Re: Lea Scott, CRCM, CAMS]
Lea Scott, CRCM, CAMS Offline
Member

Registered: 12/02/15
Posts: 91
Excellent! Thank you.

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