States introduce predatory lending initiatives. (Business Alert).
Arizona Senate Bill 1343 shares many features with the Florida and Alabama Home Loan Protection Acts. Arizona's bill differentiates between "home loans" and "high-cost home loans," and applies various restrictions to both categories. High-cost home loans are defined by rate triggers and points-and-fees triggers, but not a prepayment penalty trigger as in the Florida bill. There are two separate trigger rates: One applies to first-lien mortgage loans and the other applies to subordinate-lien mortgage loans and loans secured by an interest in a manufactured home. There are also two separate points-and-fees triggers: One applies to loans in which the total loan amount is $30,000 or more and the other applies to loans of less than $30,000.
In addition, Tennessee introduced Senate Bill 3143, which would amend Titles 45 and 47 to create limitations on certain lending practices. The bill would require a lender, on each mortgage refinanced by a lender within Tennessee, to reissue credit on the same title insurance policy issued on a previous mortgage loan when an existing mortgage loan is refinanced by the same lender within a five-year period of the previous mortgage loan. The bill would also prohibit the practice of conducting home-equity closings at the home of the borrower or at any residence unless it is impossible or unreasonably difficult for the borrower to travel to another location because of a physical infirmity or other condition. If passed, the bill would also add a new section to Tennessee's Residential Lending, Brokerage and Servicing Act, requiring disclosure of any and all renumeration retained or paid to a third-party originator or broker, if that third party or broker originates a mortgage loan. A copy of the pending Arizona, Flo rida and Tennessee bills can be found in the library/resources section at www.lotsteinbuckman.com.
|Printer friendly Cite/link Email Feedback|
|Article Type:||Brief Article|
|Date:||Mar 1, 2002|
|Previous Article:||American Residential and LBMC enter arbitration agreement. (Business Alert).|
|Next Article:||MBA applauds President's proposed budget. (Business Alert).|