We have a HELOC that we are wanting to term out and change into a home equity installment loan. We are going to have to do a new loan b/c our system won't allow changing a HELOC to a HELOAN. We of course don't want to pay doc stamps and intangible taxes since we've already paid it once, and we are not extending any new money.

Can we do a mortgage modification and state that there is a new maturity date, a new loan number, and we are modifying the mortgage to a closed end mortgage with no future advance clause.....and state on the new mortgage that we've already paid doc stamps and intangible taxes (I am not sure how that's supposed to be worded)??

And, are there any disclosure requirements? I think not since it's a mod, but just wanted to make sure.

Contact a local attorney for these questions. I know how we do this in Tennessee, but it might not fly in Florida.

You are converting an open-end product to a closed-end product. You must provide the required closed-end disclosures. See the OSC to 226.5b(5) 3rd bullet point.

Ok, so bullet 3 reads:

• If the consumer and creditor enter into an agreement during the draw period to repay all or part of the principal balance and the amount of available credit will not be replenished as the principal balance is repaid, the creditor must give closed-end credit disclosures pursuant to subpart C for that new agreement. In such cases, subpart B, including the substantive rules, does not apply to the closed-end credit transaction, although it will continue to apply to any remaining open-end credit available under the plan.

My question is this: If we have frozen a HELOC, due to one of the conditions of suspension having been met, and therefore, the line is open to payments only and the "amount of available credit will not be replenished as the principal balance is repaid", does this mean we "must give closed-end credit disclosures"?

If the consumer and creditor enter into an agreement during the draw period

If you froze the line due to one of the allowable conditions then you and the consumer did not enter into an agreement to modify the terms from open-end to closed-end. Neither would the request of the consumer to close their credit line and continue to pay the balance under the open-end credit agreement constitute you and the consumer entering into an agreement to convert the account from open-end to closed-end.