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#2164558 - 02/14/18 08:52 PM Home Equity Transaction History
Kcolbert Offline
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Joined: May 2017
Posts: 13
Our institution is putting a Home Equity program together and seeking advice from others that already have this program in place. We will be using a DDA account to run the line of credit transactions through. For those of you that use this process are you showing the transactions on a DDA statement or the Home Equity statement?

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#2164567 - 02/14/18 09:17 PM Re: Home Equity Transaction History Kcolbert
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
I assume you have it linked to a dummy checking account only for processing checks that draw on the credit line. The deposit account does not really exist.
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#2164819 - 02/15/18 09:37 PM Re: Home Equity Transaction History rlcarey
Kcolbert Offline
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Joined: May 2017
Posts: 13
It will be a real account tied to the Home Equity but the customer will not have access to it, it will be used as a processing feature to in which the transactions will run through. The account will be used to run the checks & debit/credit card transactions through. Not sure if we should provide these transaction on a DDA Statement or a HE LOC Statement? I believe it would be better to provide these on the actually HE LOC Statement but seeking advice from a bank that already has a similar process.

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#2164829 - 02/15/18 10:03 PM Re: Home Equity Transaction History Kcolbert
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
It is purely a dummy account for processing purposes. This processing technique has been around for a long time. Just make sure if you are tying a card to the account, it cannot be a debit card as the processing account is not a consumer asset account - it really does not exist as far as the consumer is concerned. It has to be a credit card and all transactions and liability will be governed under Regulation Z. All transactions will have to appear on the HELOC statement.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2164906 - 02/16/18 03:46 PM Re: Home Equity Transaction History Kcolbert
Kcolbert Offline
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Joined: May 2017
Posts: 13
thank you

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#2164913 - 02/16/18 04:08 PM Re: Home Equity Transaction History Kcolbert
Tracey, CRCM Offline
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Joined: Jul 2015
Posts: 542
Gorham, ME
Is your product a home equity line or a loan? Loans fall under TRID ( which is why we no longer offer home equity loans)
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