Assumption of HELOC

We have a daughter that would like to assume her parents HELOC. They both passed away in 2013 and she was granted the property at that time. The HELOC is in it's repayment phase. I wasn't sure that since it's now in the repayment phase with amortizing payments would we have to treat it like a new loan request for a fixed rate loan? Would it also be subject to a LE and CD?

We have a similar situation although a bit more complicated involving an estate. In the past decade, we haven't had an assumption on a consumer loan and am struggling with what we would need to disclose. This is a non-amortizing HELOC that will balloon in two years. Just in preliminary discussions so I am not sure how the assumption would be structured. I know we don't want to keep it available to draw on. Do we just have to treat this as a new loan with all new disclosures?

There are no provisions in Regulation Z that addresses the assumption of an open-end line of credit. I think it would be disclosable either way depending on whether or not it remained open-end or you converted it to a closed-end loan. Whether someone can do this under State law is a question for your legal counsel.