Skip to content

Disclosures: Using A HELOC To Pay Off First Mortgage

If a customer is paying off a first mortgage with a new home equity line of credit, do we need to disclose the first mortgage payoff in any disclosures?

Actually, the place you would usually disclose the payoff amount is on the HUD-1. The HELOC is exempt from the RESPA disclosures as long as you comply with Regulation Z disclosures. So the result is that you would not need to show the payoff amount. However, if you feel like giving the customer a HUD-1 anyway, nothing is stopping you.

-February 19
Flood - Dodging the BIG Wave , presented by Lucy Griffin and David Dickinson

First published on 2/2/03

First published on 02/02/2003

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