Loan Modification to Extend Maturity Date

Answered by:

Question:

We have a construction loan maturing in the next 3 weeks. The dwelling is not complete due to weather, and other circumstances, and the customer would like to extend the loan. Can we do a loan modification to extend the maturity date? There would be no other change in terms, so I'm thinking that would not trigger new disclosures.

Answer:

As long as the extension is granted without triggering a refinancing under 1026.20(a), no new disclosures would be required