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Modifying Home Mortgage-Principal Reduction

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Question: 
What are the rules for modifying a home mortgage loan to only lower a payment because the borrower made a significant principal reduction? He is not in foreclosure. Before TRID, we did modifications all of the time. Can you still do that? The rate and terms will stay the same.
Answer: 

1026.20(a) that defines a refinance has not changed. What you describe is not a refinance and will not trigger new diclosures.

First published on 09/23/2018

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