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#1420991 - 07/28/10 06:28 PM Disclosures Req'd on a Modification
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
We have an existing home equity loan that we are modifying.

Are RESPA disclosures required for a modification?

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Lending Compliance
#1421013 - 07/28/10 06:39 PM Re: Disclosures Req'd on a Modification Many Hats
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,390
We don't provide 'em.
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The more you sweat in training, the less you bleed in battle.......

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#1421053 - 07/28/10 07:17 PM Re: Disclosures Req'd on a Modification swiggles
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
What if there is additional money?

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#1421062 - 07/28/10 07:30 PM Re: Disclosures Req'd on a Modification Many Hats
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,390
Our legal counsel has opined that you cannot add new money to an existing obligation through a modification agreement. You have to have a new promissory note executed. This might be a state law issue, or it may just be their conservative opinion. You should probably check with your legal counsel to be sure.
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The more you sweat in training, the less you bleed in battle.......

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#1421063 - 07/28/10 07:30 PM Re: Disclosures Req'd on a Modification Many Hats
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,886
Bloomington, IN
Unless the transaction is a refinancing under 226.20 no new disclosures are required, however if the transaction is secured by the consumer's primary dwelling the ROR will apply to new money advanced.
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The opinions expressed are mine and they are not to be taken as legal advice.

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