Loan Modifications

Answered by:

Question:

Which loan terms can be changed on an existing loan in order to be considered a modification? With regard to an HPML at maturity, can a loan modification be completed in order to avoid escrowing the loan?

Answer:

You would have to compare the modification with the definitions of a refinance in section 226.20 of Regulation Z. If the loan is matured, I would recommend that you check with legal counsel to help in your determination.

First published on BankersOnline.com 2/7/11