[Jstanford]

We offer 5 year HELOCs, what’s best practice before maturity to extend the loan for 5 additional years? Renewal or Loan Modification? If the note is renewed/modified, are any disclosures required other than the mod agreement/renewal agreement? such as the early HELOC disclosure?

Thank You
Jstanford

Topic

[rcooper]

Banks use these terms differently. What you do need to know is if one of these actions is a refinance, as defined under Reg Z 1026.20, then you will need to provide new disclosures.

[Author]

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