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#2271375 - 06/08/22 06:03 PM HELOC Periodic Statements
Jr Compli Offline
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Jr Compli
Joined: Aug 2011
Posts: 3
Hello!

Is there an exemption for HELOC (dwelling secured) periodic statements that allows for the monthly statement not to be provided if a balance or a payment is not owed for more than 2 months?

I located in 1026.7 (b)(12) where the repayment disclosure can be exempt, I cannot locate where the monthly statement can be stop being provided.

Thanks for the help

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#2271377 - 06/08/22 06:32 PM Re: HELOC Periodic Statements Jr Compli
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,765
Bloomington, IN
Welcome to BOL.

From 1026.7

The creditor shall furnish the consumer with a periodic statement that discloses the following items, to the extent applicable:

(a) Rules affecting home-equity plans. The requirements of paragraph (a) of this section apply only to home-equity plans subject to the requirements of §1026.40.

(1) Previous balance.
(2) Identification of transactions. An identification of each credit transaction in accordance with §1026.8.

If there is no balance, credit or debit activity during the billing cycle then a statement is not necessary.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#2271379 - 06/08/22 06:51 PM Re: HELOC Periodic Statements Dan Persfull
Jr Compli Offline
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Jr Compli
Joined: Aug 2011
Posts: 3
Thanks Dan!

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#2271395 - 06/08/22 08:21 PM Re: HELOC Periodic Statements Dan Persfull
Jr Compli Offline
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Jr Compli
Joined: Aug 2011
Posts: 3
Dan,

I have one more clarification on this exemption. 1026.7 (b)(12)(v) official interpretation for the exemption of the repayment disclosure A, B and C notes in B :

Exemptions. Paragraph (b)(12) of this section does not apply to:

(B) A billing cycle immediately following two consecutive billing cycles in which the consumer paid the entire balance in full, had a zero outstanding balance or had a credit balance;

Is this defined as 2 complete billing cycles provided to the Borrower and the third cycle is exempt. Example: Jan and Feb provided and no further transactions or balances owed for March billing cycle so March is not required to be provided or is Feb billing cycle considered the as the 2 consecutive billing cycles if there is no further transactions or balances?

Thanks

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#2271414 - 06/09/22 12:50 PM Re: HELOC Periodic Statements Jr Compli
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,765
Bloomington, IN
1026.7(b) Rules affecting open-end (not home-secured) plans. The requirements of paragraph (b) of this section apply only to plans other than home-equity plans subject to the requirements of §1026.40.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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