Refinance…Renewal…Modification…Extension. Many banks use these terms interchangeably but from a compliance standpoint they are NOT the same. If your bank calls something a modification when the regulations deem to be a refinance, you are going to have problems. You also have to be aware that the rules for closed-end credit differ from open-end credit. Due to the COVID-19 crisis, a lot of you have likely seen a substantial increase in requests for modifications, extensions, etc.
Click on the video to listen to David explain more.
We did a webinar back in April that addressed the issues surrounding refinances, modifications and renewals. If you want to learn more, be sure to check it out. We also addressed these issues in the April 2020 (closed-end) and May 2020 (open-end) editions of our magazine, Banking on BCC.
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