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Add Cross Collateralization Verbiage to Consumer Loan?

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Question: 
Are you allowed to add cross collateralization verbiage to consumer loans?
Answer: 

Any prohibition would be a matter of State law. If you do, depending on the collateral you are referring to, ensure you explore the implications under certain regulatory requirements, such as rights of rescission under Regulation Z, any flood insurance requirements, and non-purchase or non-possessory interests in consumer goods under Regulation AA.

First published on 12/16/2013

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