If a customer indicates that they will be using their HELOC for business purposes would there be any issues with still originating, it as a consumer HELOC?

This is a pet peeve of mine.

1. Why would you price a business purpose RLOC as a consumer HELOC?
2. Why would you use a consumer HELOC legal agreement that restricts your ability to freeze or terminate the LOC? You are giving the borrower regulatory protections they are not entitled to under the regulations.

Outside of that there is no regulatory restrictions for processing it through your consumer HELOC program that I am aware of.

At most banks that I have worked for the program parameters clearly indicated that the product was to only be used for consumer purposes for the reasons cited by Dan.