When to do Early Disclosures on a Loan

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Question:

On an existing consumer R/E loan, where the loan has matured, if we use a consumer debt modification instead of a renewal note, do we need to do early disclosures?

Answer:

This is question that you should ask your attorney. How do you modify terms that no longer exist? Your modification would be a new agreement satisfying and replacing the terms that matured (no longer exist). In my opinion, that would be a refinancing under 226.20 and require all new disclosures.

First published on BankersOnline.com 8/16/10