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#2212718 - 05/02/19 05:53 PM Freezing a HELOC
Obi Offline
100 Club
Joined: Oct 2004
Posts: 181
Can we freeze a HELOC just because the customer requested a payoff?

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Lending Compliance
#2212719 - 05/02/19 05:56 PM Re: Freezing a HELOC Obi
Obi Offline
100 Club
Joined: Oct 2004
Posts: 181
Posted too soon, found my answer in a previous question:

There are six circumstances in Regulation Z § 1026.40(f)(3)(vi) under which a creditor can prohibit additional extensions of credit or reduce the credit limit applicable to any [HELOC] agreement. None of them involves doing so in connection with having provided a payoff figure for the account. Any payoff statement for such an account should include a disclaimer as to the date through which the payoff has been calculated and that it is subject to any balance changes occurring after the statement is provided.

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