Posted By: Likes to Comply
Matured HELOC-Attorney says OK to modify/renew - 10/04/17 08:13 PM
Our attorney is saying that we can modify or renew (either of which would not replace the original agreement) even though the original HELOC agreement has already matured.
What, if any, disclosures would be required and would ROR be required if nothing but the term (extended out another 10 years) is changed?
Thanks in advance.
Posted By: rlcarey
Re: Matured HELOC-Attorney says OK to modify/renew - 10/04/17 09:47 PM
Anything you do after maturity - regardless of what your attorney says is a new plan under Reg. Z and triggers all disclosures.
Official Interpretation
Section 1026.40—Requirements for Home-Equity Plans
2. Changes to home equity plans entered into on or after November 7, 1989. Section 1026.9(c) applies if, by written agreement under §1026.40(f)(3)(iii), a creditor changes the terms of a home equity plan—entered into on or after November 7, 1989—at or before its scheduled expiration, for example, by renewing a plan on different terms. A new plan results, however, if the plan is renewed (with or without changes to the terms) after the scheduled expiration. The new plan is subject to all open-end credit rules, including §§1026.6, 1026.15, and 1026.40.