HELOC How-To In-Depth

Home equity lines of credit (HELOCs) have very unique and specific compliance requirements. While some disclosures are the same as traditional mortgage loans, other requirements are specific to HELOCs. This in-depth review of HELOC requirements will start with the program-specific disclosure, the periodic statement, and lines nearing the end-of-draw period. You’ll learn how to handle adverse situations by properly calculating a significant decline in home value, identifying when additional draws can be prohibited, determining when a credit limit can be reduced, and understanding the applicable notice requirements.

While many consumer regulations allow for product terms to be changed, Regulation Z limits HELOC term changes. Therefore, it is essential to be knowledgeable about what can be changed and how to properly communicate a change to the borrower. This program will also share examples of errors, recommend HELOC areas to monitor, and provide detailed management expectations of the product requirements from application through end-of-draw period.