Balloon Loan - RESPA Disclosures

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Question:

If a balloon loan secured by a customer's primary residence is renewed are all RESPA disclosures required?

Answer:

If it is truly renewed then no new disclosures are required, but if you refinance the loan you must provide new disclosures. Does the new loan contractually satisfy and replace the old loan? If it does then it is a refinance and if not, it is a modification, extension or renewal.

First published on BankersOnline.com 3/02/09