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Mortgage Lending: § 1004.4 Requirements for Alternative Mortgage Transactions

4(a) Mortgages With Adjustable or Renegotiable Rates or Finance Charges and Home Equity Lines of Credit

1. Index values. A creditor may use any measure of index values that meets the requirements in § 1004.4(a)(2)(i). For example, the index may be either single values as of a specific date or an average of values calculated over a specified period.

Mortgage Lending: Introduction and Listing of Provisions

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Pub. L. No. 111-203, 124 Stat. 1376 (2010), significantly altered the preemptive effect of the regulation of national banks by the Office of the Comptroller of the Currency. Those Dodd-Frank Act provisions are set out in Appendix E.2, supra.

Mortgage Lending: 12 U.S.C. § 1465. State law preemption standards for Federal savings associations clarified

(a) In general

Any determination by a court or by the Director or any successor officer or agency regarding the relation of State law to a provision of this chapter or any regulation or order prescribed under this chapter shall be made in accordance with the laws and legal standards applicable to national banks regarding the preemption of State law.

(b) Principles of conflict preemption applicable

Mortgage Lending: Introduction

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) transfers responsibility for regulating federal savings associations from the Office of Thrift Supervision (OTS) to the Office of the Comptroller of the Currency (OCC). The OTS was absorbed by the OCC. The OCC has issued a regulation, reprinted below, stating that federal savings associations are subject to the same OCC regulations as applicable to national banks regarding the preemption of state law.

Mortgage Lending: Listing of Provisions

Title 12. Banks and Banking

Chapter I. Comptroller of the Currency, Department of the Treasury

Part 34. Real Estate Lending and Appraisals

Subpart A. General

* * *

Sec.

34.6 Applicability of state law to Federal savings associations and subsidiaries.

Mortgage Lending: 12 C.F.R. § 34.6 Applicability of state law to Federal savings associations and subsidiaries.

In accordance with section 1046 of the Dodd–Frank Wall Street Reform and Consumer Protection Act [12 U.S.C. § 25b], Federal savings associations and their subsidiaries shall be subject to the same laws and legal standards, including regulations of the OCC, as are applicable to national banks and their subsidiaries, regarding the preemption of state law.

[76 Fed. Reg. 43,569 (July 21, 2011).].

Mortgage Lending: Listing of Provisions

Title 12—Banks and Banking

Chapter I—Comptroller of the Currency, Department of the Treasury

Part 157—Deposits

* * *

Sec.

157.11 To what extent does Federal law preempt deposit-related state laws?

Mortgage Lending: Listing of Provisions

Title 12—Banks and Banking

Chapter I—Comptroller of the Currency, Department of the Treasury

Part 160—Lending and Investment

Sec.

160.1 General.

160.2 Applicability of law.

160.3 Definitions.

* * *

160.33 Late charges.

160.34 Prepayments.

160.35 Adjustments to home loans.

* * *

Mortgage Lending: § 160.2 Applicability of law.

State law applies to the lending activities of Federal savings associations and their subsidiaries to the same extent and in the same manner that those laws apply to national banks and their subsidiaries.

Mortgage Lending: § 160.33 Late charges.

A Federal savings association may include in a home loan contract a provision authorizing the imposition of a late charge with respect to the payment of any delinquent periodic payment.

Mortgage Lending: § 160.34 Prepayments.

Any prepayment on a real estate loan must be applied directly to reduce the principal balance on the loan unless the loan contract or the borrower specifies otherwise. Subject to the terms of the loan contract, a Federal savings association may impose a fee for any prepayment of a loan.

Mortgage Lending: § 160.35 Adjustments to home loans.

(a) For any home loan secured by borrower-occupied property, or property to be occupied by the borrower, adjustments to the interest rate, payment, balance, or term to maturity must comply with the limitations of this section and the disclosure and notice requirements of 560.210 until superseding regulations are issued by the Consumer Financial Protection Bureau.

Mortgage Lending: Listing of Provisions

Title 12—Banks and Banking

Chapter I—Comptroller of the Currency, Department of the Treasury

Part 191—Preemption of State Due–on–Sale Laws

Sec.

191.1 Authority, purpose, and scope.

191.2 Definitions.

191.3 Loans originated by Federal savings associations.

191.4 Loans originated by lenders other than Federal savings associations.

191.5 Limitation on exercise of due-on-sale clauses.

191.6 Interpretations.

Mortgage Lending: § 191.1 Authority, purpose, and scope.

(a) Authority. This part contains regulations issued under section 5 of the Home Owners’ Loan Act of 1933, as amended, and under section 341 of the Garn–St Germain Depository Institutions Act of 1982, Public Law 97–320, 96 Stat. 1469, 1505–1507.

Mortgage Lending: § 191.2 Definitions.

For the purposes of this part, the following definitions apply:

(a) Assumed includes transfers of real property subject to a real property loan by assumptions, installment land sales contracts, wraparound loans, contracts for deed, transfers subject to the mortgage or similar lien, and other like transfers. “Completed credit application” has the same meaning as completed application for credit as provided in § 202.2(f) of this title.

Mortgage Lending: § 191.5 Limitation on exercise of due-on-sale clauses.

(a) General. Except as provided in § 191.4(c) and (d)(4) of this part, due-on-sale practices of Federal savings associations and other lenders shall be governed exclusively by the OCC’s regulations, in preemption of and without regard to any limitations imposed by state law on either their inclusion or exercise including, without limitation, state law prohibitions against restraints on alienation, prohibitions against penalties and forfeitures, equitable restrictions and state law dealing with equitable transfers.

Mortgage Lending: § 191.6 Interpretations.

The OCC periodically will publish Interpretations under section 341 of the Garn–St Germain Depository Institutions Act of 1982, Public Law 97–320, 96 Stat. 1469, 1505–1507, in the Federal Register in response to written requests sent to the OCC.