HELOC Compliance: Disclosures, Documentation, Advertising, Amending & More

Popular, highly regulated, and detail driven, HELOCs are often a consumer’s product of choice to access the equity in their home. This detailed program will address HELOC advertising, application, changes, draws, disclosures, amendments, termination, guidance, and more. Ensure your program checks off all the compliance “boxes.”

Learning Objectives

• Understand the specific disclosures required in HELOC documents
• Analyze the restrictions on advertising HELOC products and the mandatory special wording
• Distinguish when a change in terms notice must be sent to the borrower
• Explain the special notice that must be given when a HELOC is reduced, suspended, or terminated
• Determine if a HELOC can be terminated when the borrower moves out of the home or if the home significantly declines in value
• Properly manage HELOCs nearing their end-of-draw period

A home equity line of credit is a special type of loan that is highly regulated. Every aspect of a HELOC has special rules. There are special disclosures to include in loan documents, specific wording required in advertisements, particular limitations on when the lender may decrease or suspend a HELOC, and special timing requirements for disclosures that must be sent before a HELOC matures. Regulation Z prohibits a lender from changing any term of a HELOC, except in very limited circumstances. This webinar will explain the required HELOC disclosures and the restrictions on HELOC advertising. It also will explain the specific situations when a lender is permitted to decrease, suspend, or terminate a HELOC, and the proper steps a lender must take to do so. In addition, how to handle HELOCs nearing their end-of-draw periods will be covered.