Thread Options
#2213994 - 05/20/19 02:44 PM Extending Maturity Date
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
Consumer Loan made prior to TRID implementation is having the maturity date changed/extended. Would extending the maturity date trigger TRID docs? Nothing is changing except the maturity date.

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2213996 - 05/20/19 03:06 PM Re: Extending Maturity Date mdog76
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
Is the extension happening prior to the maturity date?
_________________________
My Opinions Only

Return to Top
#2213997 - 05/20/19 03:07 PM Re: Extending Maturity Date mdog76
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
yes

Return to Top
#2213999 - 05/20/19 03:21 PM Re: Extending Maturity Date mdog76
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
If the loan is being modified prior to maturity day then this does not meet the definition of a refinance and TRID documentation is not required.
_________________________
My Opinions Only

Return to Top
#2214027 - 05/20/19 07:12 PM Re: Extending Maturity Date mdog76
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,598
Cape Cod
Just make sure that the modification doesn't involve something more than just an extension of the maturity that would make the transaction a refinancing under Regulation Z §1026.20(a). That would mean you'd have to handle it as a TRID loan (and apply any other applicable Regulation Z requirement). But based onyyour statement that nothing is changing except the maturity date, you should not have that problem.
Last edited by John Burnett; 05/20/19 07:14 PM.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2215567 - 06/12/19 05:07 PM Re: Extending Maturity Date mdog76
iheartcompliance Offline
100 Club
Joined: Jan 2016
Posts: 239
what happens if the loan has matured and we need to extend it by 90 days? This was a construction loan that we intend to refinance with a permanent loan; both were disclosed simultaneously.

Return to Top
#2215579 - 06/12/19 05:57 PM Re: Extending Maturity Date John Burnett
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Originally Posted By John Burnett
Just make sure that the modification doesn't involve something more than just an extension of the maturity that would make the transaction a refinancing under Regulation Z §1026.20(a). That would mean you'd have to handle it as a TRID loan (and apply any other applicable Regulation Z requirement). But based onyyour statement that nothing is changing except the maturity date, you should not have that problem.


John, could you elaborate on this a little bit? We modify all the time for reasons beyond just the maturity of the loan. That is the primary reason, but I've added money [ROR], changed terms, etc., by modification. My understanding has always been you can do pretty much anything you want other than add or maybe remove a VR feature by modification. Assuming there is no state law preventing such.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#2221644 - 09/16/19 05:54 PM Re: Extending Maturity Date RR Joker
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Originally Posted by RR Joker
Originally Posted by John Burnett
Just make sure that the modification doesn't involve something more than just an extension of the maturity that would make the transaction a refinancing under Regulation Z §1026.20(a). That would mean you'd have to handle it as a TRID loan (and apply any other applicable Regulation Z requirement). But based onyyour statement that nothing is changing except the maturity date, you should not have that problem.


John, could you elaborate on this a little bit? We modify all the time for reasons beyond just the maturity of the loan. That is the primary reason, but I've added money [ROR], changed terms, etc., by modification. My understanding has always been you can do pretty much anything you want other than add or maybe remove a VR feature by modification. Assuming there is no state law preventing such.


I have the same question as RR Joker herein. Anyone? Can you extend before maturity date and increase the payment amount?
_________________________
Just working here until I get my letter from Hogwarts.

Return to Top
#2221653 - 09/16/19 06:52 PM Re: Extending Maturity Date mdog76
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,965
Galveston, TX
20(a) Refinancings

1. Definition. A refinancing is a new transaction requiring a complete new set of disclosures. Whether a refinancing has occurred is determined by reference to whether the original obligation has been satisfied or extinguished and replaced by a new obligation, based on the parties' contract and applicable law. The refinancing may involve the consolidation of several existing obligations, disbursement of new money to the consumer or on the consumer's behalf, or the rescheduling of payments under an existing obligation. In any form, the new obligation must completely replace the prior one.

The key is "the original obligation has been satisfied or extinguished and replaced by a new obligation". Unless you are adding or changing a variable rate feature, if you aren't doing that quoted action, it is not a refinance regardless of what else you are doing.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2221691 - 09/17/19 01:19 PM Re: Extending Maturity Date mdog76
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Thank you. That helps.
_________________________
Just working here until I get my letter from Hogwarts.

Return to Top