Future Advance Clause of Previous Loan for New Loan

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Question:

If the bank makes a consumer related loan and refers to the Future Advance Clause of a previous mortgage that secures the borrowers primary residence, is the new loan subject to RESPA and HPML regulations?

Answer:

Yes, plus a new flood notice if located in a SFHA, the ROR, MDIA disclosures and timing requirements and all the other fun regulations that apply to a consumer loan secured by the consumer's primary dwelling.

First published on BankersOnline.com 11/15/10