The Essentials of HELOC Compliance

Recorded: May 29, 2025
Presented by: Ginger McCullough, Manager, Forvis Mazars, LLP

A three-hour remote seminar covering lending compliance as it relates to Home Equity Lines of Credit (HELOCs).

Institutions often focus their compliance efforts on mortgage loans, which is understandable given the sheer number of requirements they have and the significant revisions since the 2008 financial crisis. However, open-end consumer loans secured by a dwelling (home equity lines of credit or HELOCs) can be just as important and an integral part of financial institutions’ loan portfolio. Given the current economic market, lenders have been seeing their HELOC originations increase substantially lately.

Although HELOCs tend to be seen as “simpler” (and can be in certain respects), HELOCs present their own unique questions and challenges. It is important that financial institutions review their obligations regarding HELOCs in addition to those regarding closed-end transactions.

This three-hour remote seminar will focus on the rules under the Truth-in-Lending Act / Regulation Z that are specific for HELOCs, including, for example, certain HELOC limitations, disclosures specific to HELOCs, and Right of Rescission. We’ll also briefly discuss how HELOCs are treated under other compliance rules and provide a general checklist that may be helpful.

HERE IS WHAT YOU WILL LEARN:

• TILA/Reg Z rules:
  • What HELOCs are and their limitations
  • Origination requirements under TILA/Reg Z
    • At Application disclosures
    • Account-Opening Disclosures
    • Right of Rescission
  • Servicing Requirements
    • Periodic Servicing Statement options
    • Billing error resolution
  • A study of the HELOC advertising rules

• Origination requirements under other rules (e.g., RESPA and High-Cost, ECOA, UDAP/UDAAP, FCRA)
• Interagency Statement on HELOCs and End-of-Draw Periods