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Loan Renewed After the Original Maturity Date

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Question: 
Consumer 1st lien mortgage originally set up as a 30 year with a 5 year call. Loan matured February 1st, bank did not renew until April. Since this was renewed after the original maturity, big discussion started. Some think it had to be a new loan, others think a renewal would have been fine. You date the renewal docs the maturity date but have April as the signing date? Would that have been okay? Instead they did a whole new loan and the consumer had to pay for all the closing costs again. A new Title Policy and etc.
Answer: 

You need to sit down with legal counsel. This is not a compliance question.

First published on 09/09/2018

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