§ 107.701. Modification Agreements.

Notwithstanding any other provisions of the law or regulations, an association may, without prior written consent of the commissioner, execute a modification agreement when any of the following conditions exist:

(a) A statutory change has taken place subsequent to the inception of the loan providing for a longer loan term or a larger loan to appraised value ratio.

(b) An additional advance is made subsequent to the inception of the loan to either the existing borrower or a new purchaser who has assumed the loan and which does not increase the unpaid balance to above the existing statutory limit.

(c) Due to the financial status of the borrower, it is advisable to reduce the monthly payments to prevent delinquency or default and the term of the loan is extended not to exceed the existing statutory limit.

HISTORY

1. Change without regulatory effect renumbering former Section 175.1 to Section 107.701 (Register 87, No. 14). For prior history, see Register 82, No. 21.

Note

Note: Authority cited: Section 5255, Financial Code. Reference: Section 6701, Financial Code.