Reporting Rules for Open-End & Closed-End LOCs

Question:

My studies indicate lines of credit are optionally reported (we do not report). Most of the writings seem to equate lines of credit with home equity lines of credit with no distinction between closed-end and open-end. Are there different reporting rules for open-end and closed-end lines of credit?

Answer:

Only open-end lines of credit are subject to the optional reporting. Refer to Section203.4(c)(3). This includes operating lines and revolving lines even if the credit line is used for home purchase or home improvement. Closed-end lines (multiple advance draw loans) may be reported, but typically they are temporary financing.

First published on BankersOnline.com 11/24/08