When a client is seeking an extension for their loan payment, an Extension Agreement must be completed.
Consider the following when an extension is requested:
- All interest and any fees due must be paid at the time of an extension.
- Appropriate lending authority is required to approve an extension.
- If outside lender’s authority, appropriate approval from a Community President or Credit Administration must be obtained.
Consumer Purpose
An extension on a consumer purpose loan can occur no sooner than 12 months from the origination date of the loan and is limited to:
- One 30 day extension per 12 month period
- Three 30 day extensions for the life of the loan
When an extension is approved, do the following:
- Change the next payment due date.
- Change the maturity date.
- If more than 30 days from the ORIGINAL maturity date, a Truth-In-Lending Disclosure is required.
- If more than 30 days from the ORIGINAL maturity date and secured by real estate, a Truth-In-Lending Disclosure and a Flood Determination is required.
If the real estate includes a 1-4 family dwelling, the ONLY time you may use this form is:
- To change the payment due date no more than 30 days; and
- Assess NO fee
Commercial / Business Purpose
An extension on a commercial/business purpose loan should be for the purpose of gathering financial statement information and is limited to 1 extension between each renewal.
When an extension is approved, do the following:
- Change the next payment due date.
- Change the maturity date.
- If more than 30 days from the ORIGINAL maturity date and secured by real estate a Flood Determination is required.
The completed document must be uploaded into IMM e-Sign or e-Sign web and may be signed electronically. Send original signed extension to Loan Servicing in the designated bag.