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Open-end or closed-end?

Question: 
How are lines of credit that do not revolve treated; are they open-end or closed-end?
Answer: 

A “draw down line of credit” – one that does not allow additional borrowing as the principal is reduced – is a closed end loan counted toward the closed-end thresholds. An open-end line is a revolving line of credit that allows principal to be borrowed, paid back and borrowed again while the line of credit is in effect.
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Learn more about Kathleen Blanchard’s webinar HMDA – Thresholds, Exemptions, Temporary, Partial – How It All Works

First published on 11/10/2019

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