[Barb]

It’s my understanding that when we are doing a modification of a consumer real estate loan to extend the maturity we aren’t required to do a TIL disclosure. Would it be required if we are also changing the payment amount and/or changing the interest rate?

[rcooper]

“Whether a refinancing has occurred is determined by reference to whether the original obligation has been satisfied or extinguished and replaced by a new obligation, based on the parties’ contract and applicable law.”

If you aren’t replacing the original note with a new note or if you aren’t adding a variable rate feature to an account that didn’t have one, you could consider it a modification. Take a look at 1026.20(a) and its commentary before you make a decision on whether you have a refinancing or modification.

[Author]

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