Most Popular Lending Content
Change in terms on an ARM loan – to the customer’s benefit – so are new disclosures needed?
08/04/2024
We are doing a change in terms to modify a consumer’s ARM loan. We are reducing the margin to make up for a higher index rate when the rate adjustment hits, and are resetting the adjustment period from 5 years to 3 years. The customer is benefiting from this change (the rate will actually go down just a touch), and they are signing a CIT agreement. Is this OK to do with just a CIT agreement?
Commercial Revolving Line of Credit
07/28/2024
This concerns a commercial revolving line of credit that is secured by the borrowers' home. This loan is done in the individuals' names and the purpose of the loan is to purchase, renovate and sell investment houses. The thing that is confusing me is that they aren't making purchases or renovating with the line right now. Would this loan still be HMDAreportable since it is secured by the borrowers' primary residence?
Reducing paper, keeping auditors happy
07/28/2024
Why might auditors prefer accessing digital loan files instead of paper?
OK to increase a fixed rate with a Modification agreement only?
07/28/2024
Can a fixed interest rate be increased with only a modification agreement? Or is a new note with new disclosures required since the rate is not being reduced?
Post-maturity rate reduction on a HELOC ok?
07/21/2024
We have a HELOC that has matured, and the customer is having trouble repaying. Can we do a workout agreement on it (reduce the variable rate interest to thereby reduce the payment and give them a breather)?