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True or False: Change memos can only be used to document changes that occur to a loan after its been booked

User Benophobia
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1 Answer

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Final answer:

False. Change memos can be used to document changes to a loan before or after it has been booked.

Step-by-step explanation:

False. Change memos can be used to document changes that occur to a loan before or after it has been booked. Change memos are used to communicate and document any modifications made to a loan, such as adjustments to the loan amount, interest rate, repayment term, or other terms and conditions.

For example, if a borrower requests a reduction in the loan amount after the loan has been booked, a change memo can be created to record this change and update the loan documentation accordingly.

In summary, change memos are not limited to changes that occur after a loan is booked, but can be used to document modifications at any stage of the loan process.

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