When a Loan Customer Dies: What are the Top 15 Issues?
What 15 issues should be considered before handling a deceased customer's loan accounts?

Attend this webinar to find out and learn additional tips to protect your financial institution when making a loan.

As lenders, we work hard to make good underwriting decisions regarding a borrower’s repayment ability. In addition to analyzing a consumer’s income or the cash flow of a business, it’s a common practice to also take a security interest in collateral. Collateral types vary greatly and each has specific requirements to perfect a security interest and mitigate risk. One risk factor that’s difficult to predict is death. If the death involves a sole proprietor, partner, or a key corporate officer, it may mean that a number of high balance loans are outstanding and repayment is uncertain. Lenders would like to be sensitive to the loan customer’s family or help the remaining business owners, but the compliance clock doesn’t stop ticking. What happens now, and what are the critical issues?


  • Is the “death” a triggering event for default? What language should be in a commercial note?
  • Are “Right to Cure Notices” required?
  • How should lenders handle questions about the estate?
  • What information can be shared and with whom?
  • What do you need before releasing the information?
  • Is there standard language that your loan agreements should have?
  • What protections must be extended to family members if the borrower was a service member on active duty? This includes a brief overview of MLA impact on covered accounts and the definition “dependents” at the time of death.
  • How should notices to co-borrowers, guarantors and co-signers be given?
  • What is the effect on the foreclosure process?
  • What is the impact of the NEW CFPB mortgage servicing rules published on August 5, 2016? These changes help ensure that those who inherit or receive property have the same protections as the original borrower.
  • Are Home Equity Lines of Credit impacted?
  • How can a financial institution protect its collateral?
  • How does the financial institution handle issues of guarantors, setoff and insurance?
  • What do the banking regulations and exam guidelines say?


CSRs, branch managers, lenders, loan operations, credit administration, compliance personnel, legal staff and anyone who handles loan accounts. This webinar is presented at the national level – state law is not addressed.


Susan Costonis CRCM, Consulting &Training for Financial Institutions, is a compliance consultant and trainer who is affiliated with gettechnical inc. She specializes in compliance management along with deposit and lending regulatory training. Most of her 35-year career was spent as a banker in several areas including lending, marketing, electronic banking, compliance and senior management.

Credit Information

Institute of Certified Bankers: Visit http://www.icbmembers.org/login.aspx for instructions regarding self-reporting. Estimated credits: 2 hours/session


Live Webinar:

Member price: $275.00 | Non member price $550.00

On-Demand Webinar

Member price: $295.00 | Non member price $590.00


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