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#2131845 - 05/25/17 02:54 AM Increased loan amount compliance implications
Anonymous
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Our mortgage loan originators want to increase the loan amount (post-closing) on a consumer residential construction loan. Assuming our state law, note and mortgage clauses allow this, what compliance implications do we face? From reading Reg Z, the modification will be deemed a refinance. Does this require a new loan estimate along with a new closing disclosure? Outside of flood, what other notices/disclosures will have to be provided again? Can we rely on any initial disclosures if the increased loan amount does not change/impact the initial disclosure?

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#2131855 - 05/25/17 11:06 AM Re: Increased loan amount compliance implications Anonymous
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
From reading Reg Z, the modification will be deemed a refinance.

Why?
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