Please Interpret

[unapathetic]

What is the name of your state? Federal Law

Could you please put this law/rule into plain English for me? Does this apply to all loans made by lenders that are regulated by the OTS, including alternative mortgages?

[Code of Federal Regulations]
[Title 12, Volume 5]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR590.3]

[Page 442-443]

http://squid.law.cornell.edu/cgi-bin/get-cfr.cgi?TITLE=12&PART=590&SECTION=3&TYPE=TEXT

Thank you

 

[JETX]

Simply, if you have a federally 'related' loan, issued within specific dates, state laws as 'interest, discount points, finance charges, or other charges' don't apply.

 

[unapathetic]

I get that part but the last line of it says that it doesn't preempt prepayment limitations imposed by the states. I am dying to know if that means all lenders who make home loans...

 

[BriantheBanker]

YES and NO

There is HUGE debate in the mortgage industry regarding who is in charge.
(Some) Federal Banks claim state laws do not pertain to them.
The problem is that states are trying to implement and interpret law differently.
(Some) Fed banks claim it is not fair or feasible to follow state regulations.
States (of course) expect their guidelines to be followed.

I think the problem in the industry starts with a huge variety of interpretations of law, guidelines, etc...
People use the same word and are saying different things.
For instance "predatory lending' is a generic term that means different things to different people. It does not describe any one activity, but some will use the term to describe specific activity.
Symantics. I love the english language.

BriantheBanker