Disbursement Request/Authorization Form

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Question:

When renewing a closed end consumer loan note to lower the rate and extend the maturity date (leaving our mtg in place, not having to modify it, since it had no maturity date stated on it) are we required to disclose the closing fees on a specific HUD form, or are we good to just use our Disbursement Request and Authorization form that is generated thru our Laser Pro system and lists all of the fees collected?

Answer:

I would highly suggest you research state law. For example, if this mortgage is filed in Indiana, it is only good for 10 years.

If you are refinancing this loan, a new note replacing the existing note, then you have a refinancing and must follow all disclosure rules. If you are modifying the existing note new disclosures would not be required, however that would not affect the possibility of your mortgage expiring under state law.

First published on BankersOnline.com 1/21/13