Answer:
The regulation requires a rate cap but does not require or prohibit a floor.
First published on BankersOnline.com 1/7/02
HELOC Floors
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Question:
We have just put into our HELOC notes/disclosures a floor rate of 6% even though our index is WSJ prime plus a margin. Currently, the WSJ prime is 5% plus our index puts our HELOC's at 5.25% My question is can we put a floor rate feature on the HELOC?
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