02/11/2013
We currently have Home Equity Lines of Credit (open ended) that have floor rates of 6.00% and 7.00% and we would like to reduce these to our new floor rate of 4.25%. I know under Reg Z Section 226.5b (f) it states we can make a change that will unequivocally benefit the consumer throughout the remainder of the plan. With that being said what type of documentation and disclosures must be given in order to stay in compliance with the regulators and terms of the loan? We want to ensure that if we do a modification agreement on the HELOC we do not need to redisclose on the loan.
12/24/2012
I am renewing a loan that was originally a HELOC. The loan matured and I collected an updated "consumer HELOC" application and obtained a new credit report. The loan was approved for renewal but for a lower amount and shorter term. I was told that I should not have collected a new loan application (purpose on application was stated a renewal of HELOC) because this is not a new loan request. No new disclosures were required and only a simple form modification agreement was needed to renew the loan. Can you please advise as to what documentation would be need for this type of transaction?
08/27/2012
If a bank reduces the maximum credit on a HELOC or suspends the line, is an adverse action notice required to be sent to the borrower?
08/27/2012
Are advances on lines of credit (such as a Home Equity Line) to officers who later, during the life of the line, become Executive Officers required to be approved under Regulation O? Is each advance an "extension of credit" since a line of credit does not constitute a "binding Commitment?"
05/28/2012
Must a customer sign a POA in order to open a HELOC?
04/30/2012
Purpose of new loan is to pay down a portion of an existing loan secured by a dwelling and new loan is secured by a dwelling. Is this a HMDA reportable loan under the refinance definition? Purpose of new loan is to term out the outstanding balance on a LOC that was secured by a dwelling and replacing it with a new loan secured by a dwelling, however the LOC is not closed it will remain open for future advances. Is this a HMDA loan reportable loan under the refinance definition?
04/23/2012
Can a HELOC be used as a sweep account? The customer wants to use his HELOC to "protect his/her checking account".
03/05/2012
If your HELOC does not have any activity or balance, do you still have to send a monthly statement to the customer?
01/30/2012
Does Regulation B now require us to collect monitoring data on HELOC apps if we do not report HELOCs on HMDA?
01/02/2012
A long term HELOC was issued with a maturity date in 2016. The borrower upped the amount on the credit and executed a new document with the maturity date pegged to "5 years after original Equity Asset line Agreement", which arguably made maturity date come in 2011 instead of 2016 if you assume the reference to the original agreement works. The problem is that the new agreement's reference to the original agreement uses a different title from the original agreement ("equity asset line agreement" is the title of the new agreement and the reference to the original agreement versus "equity line of credit ten year interest only credit agreement", which is the actual title of the original agreement). Did the maturity date change? The new agreement is essentially a full new agreement except for the term and credit limits. The modification to the deed of trust only refers to the increase in credit amount, not any change in maturity date. I don't see any conflicts resolved in favor of the new agreement language or anything stating that the new agreement controls.