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Written Notice for Changing Equity Line Terms

Question: 
We currently have a floor on our equity lines. Our senior lender would like to waive the floor for any customer (new or existing) that will set up an automatic debit from their checking account to make their monthly payment. Would we need to provide anything in writing regarding the new rate for our existing clients that opt to do this?
Answer: 

Prepare a modification agreement that states the facts about the floor being waived. Since this is completely in the borrower's favor, I wouldn't worry about having their signature. Take advantage of the marketing implications and mail this agreement to every affected customer - "look what we are doing for you!"

First published on BankersOnline.com 9/15/03

First published on 09/15/2003

Filed under: 
Lending
Filed under lending as: 
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Marketing

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