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#2228126 - 12/31/19 07:57 PM AAN Requirements - Consumer Requested Change
Annie Offline
Junior Member
Joined: Sep 2018
Posts: 27
If a consumer explicitly agrees to a modification in terms of a HELOC, such as a reduction in the line amount, must an Adverse Action Notice be delivered since the change could be considered "unfavorable?"

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Lending Compliance
#2228136 - 01/02/20 02:00 PM Re: AAN Requirements - Consumer Requested Change Annie
Inherent_Risk Offline
Gold Star
Joined: Jan 2017
Posts: 326
1002.2(c)
"(2) The term does not include:
(i) A change in the terms of an account expressly agreed to by an applicant;"

There is a difference between acknowledging a change the bank is making and expressly agreeing to it, but based on how you are describing it, it sounds like an Adverse Action Notice would not be required. Also note that if the account is currently deliquent, there is another provision that would cover this (and remove it from the definition of an adverse action).

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#2228137 - 01/02/20 02:06 PM Re: AAN Requirements - Consumer Requested Change Annie
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,310
Galveston, TX
I assume if the borrower "explicitly agrees" that they are signing a legal modification. In that case, IR is correct.
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