Local Rule 3002.1-1: HELOC CREDITOR NOTICE OF MORTGAGE PAYMENT CHANGE

RULE 3002.1-1. HELOC CREDITOR NOTICE OF MORTGAGE PAYMENT CHANGE.

(a) Annual Statements. A creditor whose claim is secured by a chapter 13 debtor's principal residence which is based on a home equity line of credit (a "HELOC"), then the holder of that claim (the "HELOC Creditor") shall be excused from complying with the general requirement of Bankruptcy Rule 3002.1(b)(1) if:

(1) the monthly payment amount does not increase or decrease by more than $10 in any single month;

(2) the HELOC Creditor sends an annual statement within the same one-month period each year; and

(3) the annual statement includes:

(A) a reconciliation statement showing the amounts of any monthly over-payments or under-payments over the course of the prior year;

(B) if there was a net over-payment for the prior year, the amount and application of the over-payment, the current balance the HELOC Creditor is holding, the location of the funds, and how the HELOC Creditor proposes to apply the over-payment against the current year's amounts due; and

(C) if there was a net under-payment for the prior year, an invoice for the amount necessary to satisfy that under-payment.

(b) Late Fees; Default. If the HELOC Creditor chooses to send an annual statement in lieu of notices of each payment change, then it may not assess any late fee, or declare the debtor to be in default, because of any shortfall in the monthly payment, if the debtor's payment was at least as much as was set forth on the last annual statement or a subsequent separate notice of payment change.