Overdrawn account and mortgage

Posted By: Tryin-2-Comply

Overdrawn account and mortgage - 11/28/08 06:25 PM

We have a customer who had had an overdrawn account for some time now - the officer wants to charge the overdraft to their home mortage (non-purchase money).

My first instincts are NO as this would be an extension of credit and an increase in the security - but is there a loophold that would allow for this.
Posted By: rlcarey

Re: Overdrawn account and mortgage - 11/28/08 06:58 PM

I would not suggest it. The advance would have to be subject to the right of rescission and unless your deed/mortgage had a future advance clause it would really open a can of worms from an unfair and deceptive practices perspective.
Posted By: Tryin-2-Comply

Re: Overdrawn account and mortgage - 11/28/08 07:28 PM

Thank you for the response - definately don't want any of those UDAP issues....thanks again.