Disclosures for Changing Payment Terms

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Question:

I want to change the payment terms (lower the payment amount) on a consumer car loan because the borrower made a large principle reduction. Rate, maturity date, and payment date will stay the same. I would also like to release unneeded collateral due to the significant decrease in the loan balance. What disclosures are required?

Answer:

This sounds like a simple modification that should not trigger additional disclosures and you should visit with your attorney regarding the proper modification documents required.

First published on BankersOnline.com 5/6/13