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#805848 - 08/30/07 02:25 PM HELOC Cross-Collateralization
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
Our closed-end consumer notes provide that "collateral securing other loans with you may also secure this loan." A concern has been raised that our HELOC agreement does not provide that the principal dwelling does not secure any other loans. It was felt this would be necessary so that right of rescission would not be required on say, a car loan. Does anyone have verbiage in their HELOCs to this effect? Thank you.

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Lending Compliance
#806261 - 08/30/07 06:00 PM Re: HELOC Cross-Collateralization Jan94
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Our standard Bankers System Note says "this Loan Agreement will not secure any debt for which you fail to give any required notice of the right of rescission".
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#806766 - 08/31/07 04:16 AM Re: HELOC Cross-Collateralization HRH Okie Banker
Jan94 Offline
Platinum Poster
Joined: Mar 2001
Posts: 828
USA
Thank you. We also used Bankers Systems forms and I looked a little further and found similar verbiage and references that the principal dwelling would not secure other debt. This will answer my question. Appreciate you pointing me in the right direction (it's been a hectic day!)

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