Skip to content
BOL Conferences
Thread Options
#322179 - 02/25/05 02:58 PM Rescission and maturity date on note
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
We have a situation where the loan closed 10/14/04, but was a recindable transaction, therefore disbursement did not occur until 10/19/04. Our system shows the maturity date of the note to be 10/19/2024; however, the actual HELOC agreement and disclsoure shows maturity as 10/14/2024. I know the note is the overriding factor; but which way is standard i.e. maturity date = loan closing date + loan term or maturity date = loan closing + recission period + loan term? I would guess the maturity date should be loan closing + recission period + loan term because the customer doesn't get use of the funds until that time. Also, should'nt we reflect our system to match the note?
Last edited by John Burnett; 02/25/05 05:01 PM.
Return to Top
Lending Compliance
#322180 - 02/25/05 03:21 PM Re: Rescission and maturity date on note
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,883
Bloomington, IN
Is this a HELOC or closed end loan?

HELOC - our maturity date is calculated from the note date.

Closed end - maturity date is calculated from the 1st payment date minus 1 month, i.e. 30 year loan - note date 6/5/04 - first payment due 8/1/04 - maturity date 7/1/2034.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#322181 - 02/25/05 03:25 PM Re: Rescission and maturity date on note
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
Dan, this is a HELOC.

Return to Top
#322182 - 02/25/05 03:34 PM Re: Rescission and maturity date on note
Cowboys Fan Offline
Power Poster
Joined: Dec 2002
Posts: 4,623
SC
We calculate our HELOC maturity dates the same way as Dan.
_________________________

Return to Top
#322183 - 02/25/05 03:41 PM Re: Rescission and maturity date on note
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,883
Bloomington, IN
Quote:

Dan, this is a HELOC.




Duhhh, you said so right in your original post didn't you? It didn't register for some reason when I first read it.

We calculate the maturity date from the note date.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#322184 - 02/25/05 07:03 PM Re: Rescission and maturity date on note
Shopgirl Offline
Diamond Poster
Joined: Aug 2003
Posts: 1,264
Southeast
Thanks Dan and others for the reply. I can always count on you all in time of need.

Return to Top

Moderator:  Andy_Z