Finance
In South Dakota, a 'loan modification' differs from a 'refinance' in that a loan modification:
ACreates a new loan with a new lender
BPermanently changes the terms of the existing loan without creating a new loan✓ Correct
CRequires paying off the existing mortgage in full
DOnly adjusts the interest rate, never the principal
Explanation
A loan modification permanently changes the terms of an existing mortgage (interest rate, term, principal balance) without creating a new loan or requiring refinancing with a new lender.
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