Closed End Loans - Billing Notices & Statements

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Question:

Does a bank have to provide a billing notice for closed-end loans, and is there a requirement to provide a periodic statement to identify payment transactions on closed-end loans?

Answer:

That would be a matter of state law or contractual language. In most cases where a billing/periodic statement is generated for a closed-end loan the requirements (for both the borrower and the lender) are spelled out in the loan contract, i.e., how many days before the payment due date will the lender mail the statement, etc.

First published on BankersOnline.com 8/31/09