Note Renewal without Re-Disclosing?

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Question:

A Bank holds mortgage on a primary residence and wishes to extend the maturity date. No other terms are affected, no new money, just extend re-payment. Can we do a note renewal without re-disclosing?

Answer:

Yes. As long as you don't replace this loan with a new loan (rather, simply prepare an extension agreement that refers to this loan), no new disclosures are triggered under RESPA/TIL/HMDA. You are subject to the flood insurance requirements.

You can refer to the definition of "refinance" in RESPA and HMDA and to 1026.20(a) of Reg Z.

First published on BankersOnline.com 6/4/12