Skip to content

Controlling Disbursements by Monitoring Work HELOC

Answered by: 

We have approved a HELOC to be used for the construction of an addition to the home. Can we control the disbursements by monitoring work completed by a third party inspector? Also may a fee be charged for those inspections?

Not unless you had a legal addendum drawn up and made a part of the contract and then I would even question that. Reg. Z 1026.40 has specific prohibitions on restricting or suspending advances on a HELOC.

These are the issues you run into when you use a legal agreement for something other than what it is intended to be used for.

First published on 11/03/2014

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics