No, we do not believe that adding language to a change in terms agreement allowing you to charge a lien release fee would satisfy Regulation Z’s requirement to disclose such fees at account opening.

For home-equity plans, Regulation Z states that creditors must disclose at account opening “the circumstances under which a finance charge will be imposed and an explanation of how it will be determined,” as well as “[t]he amount of any charge other than a finance charge that may be imposed as part of the plan, or an explanation of how the charge will be determined.” Regulation Z requires creditors to provide these account opening disclosures “before the first transaction is made under the plan.”

Consequently, we do not recommend charging a lien release fee that was not disclosed before the first transaction made under the HELOC. We believe that charging a HELOC fee that was not disclosed at the account opening would violate Regulation Z.

For resources related to our guidance, please see:

• Regulation Z, 12 CFR 1026.6(a)(1) (“The requirements of this paragraph (a) apply only to home-equity plans subject to the requirements of § 1026.40. A creditor shall disclose the items in this section, to the extent applicable:

(1) Finance charge. The circumstances under which a finance charge will be imposed and an explanation of how it will be determined, as follows: . . .

(2) Other charges. The amount of any charge other than a finance charge that may be imposed as part of the plan, or an explanation of how the charge will be determined.”)

• Regulation Z, 12 CFR 1026.5(b)(1)(i) (“The creditor shall furnish account-opening disclosures required by § 1026.6 before the first transaction is made under the plan.”)