Answer:
Answer by Andy Zavoina:
Look at 226.20 for what is a refinancing. If you are extending the maturity, the payment schedule and providing new funds, you have more than a modification and all the disclosures will be needed based on a new loan or refinancing.
Answer:
Answer by Richard Insley:
You most likely do not have a "note securing a deed of trust", but rather the opposite. For starters, you will need a modification agreement to amend the terms of the note. Increasing the lien will probably trigger the right of rescission for the new money. Finally, you will need to run down the title and replace the deed of trust (i.e., reclose the loan) if the amended loan amount exceeds the current deed of trust.
First published on BankersOnline.com 10/7/02
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