This question came to me today and I thought I answered it appropriately but wanted to get a second opinion. The question was whether or not a personal financial statement is required for a HELOC application. My response was that the bank needs to determine whether or not the applicant can repay the loan but the income/debts are part of the application and a separate financial statement was not required. I also indicated that it was possible that the bank's loan policy may have some other requirements, but none to my knowledge. Was I off on this or was there anything else I could have included? Thanks!

There is no requirement for the submission of a financial statement on a HELOC. However IMHO, in order to not be accused of predatory lending you need to somehow determine the applicant's ability to repay. That could however be calculated from such things as a credit report. It really comes down to your internal procedures.