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Mortgage Lending: KENTUCKY

Ky. Rev. Stat. Ann. §§ 286.8-110, 360.100 (West)

Scope: High-cost home loans as defined by § 360.100(1)(a); additional loans subject to prepayment penalty limitations.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: No creditor shall make a high-cost home loan if creditor does not believe borrower will be able to make scheduled loan payments; verification of income and financial resources required; verification of ability to repay required (§ 360.100(2)(i), (y), (z)).

Mortgage Lending: LOUISIANA

La. Stat. Ann. § 6:1096

Scope: Residential mortgage loans, excluding federally related mortgage loans, as defined in § 6:1096.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: None.

Loan Counseling: None.

Disclosures: None.

Negative Amortization: None.

Mortgage Lending: MAINE

Me. Stat. tit. 9-A, §§ 8-501 to 8-507

Scope: Higher-priced mortgage loans, high-cost mortgage loans, and residential mortgage loans as defined in tit. 9-A, § 8-506. Does not apply to supervised financial organizations (tit. 9-A, § 8-506).

Net Tangible Benefit Requirement for Refinancings: Refinancing of an existing residential mortgage loan with a high-cost or higher-priced mortgage loan prohibited when new loan does not have reasonable, tangible net benefit to borrower (tit. 9-A, § 8-506).

Mortgage Lending: MARYLAND

Md. Code Ann., Com. Law §§ 12-127, 12-401 to 12-415, 12-1029 (West); Md. Code Regs. 09.03.06.19

Scope: Mortgage loans as defined in §§ 12-127, 12-1029, secondary mortgage loans as defined in § 12-401.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: Lender may not make a mortgage loan or secondary mortgage loan without giving due regard to borrower’s ability to repay (§§ 12-127, 12-1029, 12-409.1).

Mortgage Lending: MASSACHUSETTS

Mass. Gen. Laws ch. 183, §§ 28C, 56, 59, 66; Mass. Gen. Laws ch. 183C, §§ 1 to 19; 209 Mass. Code Regs. § 32.34

Scope: Some provisions limited to high-cost home mortgage loans as defined in ch. 183C, § 2, others applicable more broadly.

Net Tangible Benefit Requirement for Refinancings: Refinancing of home loan that was consummated within prior 60 months prohibited unless the refinancing is in borrower’s interest (ch. 183, § 28C).

Mortgage Lending: MICHIGAN

Mich. Comp. Laws §§ 445.1631 to 445.1645

Scope: Covered non-purchase money mortgage loans as defined in § 445.1632.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: None.

Loan Counseling: None. (The provision requiring loan counseling was repealed in 2016.)

Mortgage Lending: MINNESOTA

Minn. Stat. §§ 58.02, 58.13, 58.137, 58.18

Scope: Residential mortgage loans and subprime loans as defined in § 58.02.

Net Tangible Benefit Requirement for Refinancings: Knowingly or intentionally making a residential mortgage loan when new residential mortgage loan does not provide a reasonable, tangible net benefit to the borrower is prohibited (§ 58.13).

Mortgage Lending: NEBRASKA

Neb. Rev. Stat. §§ 45-1007, 45-1024

Scope: Installment loans made pursuant to Installment Loan Act.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: None.

Loan Counseling: None.

Disclosures: None.

Negative Amortization: None.

Limits on Points and Fees: None.

Mortgage Lending: NEVADA

Nev. Rev. Stat. §§ 598D.010 to 598D.150

Scope: Home loans as defined in § 598D.040.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: Prohibited to knowingly or intentionally make a home loan without determining, using any commercially reasonable means, that borrower has ability to repay loan (§ 598D.100).

Loan Counseling: None.

Disclosures: None.

Negative Amortization: None.

Limits on Points and Fees: None.

Mortgage Lending: NEW JERSEY

N.J. Stat. Ann. §§ 46:10B-1 to 46:10B-15, 46:10B-22 to 46:10B-35 (West); N.J. Admin. Code §§ 3:25-4, 3:30-1.1 to 3:30-9.1

Scope: High-cost home loans as defined in § 46:10B-24, mortgage loans as defined in § 46:10B-2, and graduated payment mortgages as defined in § 46:10B-12.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: None.

Mortgage Lending: NEW MEXICO

N.M. Stat. Ann. §§ 58-21A-1 to 58-21A-14

Scope: Home loans and high-cost home loans as defined in § 58-21A-3.

Net Tangible Benefit Requirement for Refinancings: Refinancing of existing home loan must provide borrower reasonable, tangible net benefit (§ 58-21A-4(B)).

Ability to Repay: Documentation and analysis of borrower’s reasonable ability to repay home loan and costs required (§ 58-21A-4(C), (D)).

Mortgage Lending: NEW YORK

N.Y. Banking Law §§ 6-l, 6-m (McKinney); N.Y. Real Prop. Acts. Law § 1302 (McKinney); N.Y. Comp. Codes R. & Regs. tit. 3, pt. 41

Scope: High-cost home loans as defined in N.Y. Banking Law § 6-l, subprime home loans as defined in N.Y. Banking Law § 6-m.

Mortgage Lending: NORTH CAROLINA

N.C. Gen. Stat. §§ 24-1.1E, 24-1.1F, 24-10.2

Scope: High-cost home loans as defined in § 24-1.1E(a), consumer home loans as defined in § 24-10.2. Rate spread home loans as defined in § 24-1.1F(a1).

Net Tangible Benefit Requirement for Refinancings: Refinancing of existing consumer home loan must provide borrower reasonable, tangible net benefit (§ 24-10.2).

Mortgage Lending: OHIO

Ohio Rev. Code Ann. §§ 1343.011, 1345.01 to 1345.031, 1349.25 to 1349.36 (West)

Scope: Residential mortgages as defined in § 1345.01, covered loans as defined in § 1349.25.

Net Tangible Benefit Requirement for Refinancings: Refinancing of existing residential mortgage must provide borrower reasonable, tangible net benefit (§ 1345.031); refinancing of covered loan into another covered loan by same lender or assignee prohibited within one year unless refinancing in consumer’s interest (§ 1349.27).

Mortgage Lending: OKLAHOMA

Okla. Stat. tit. 14A, §§ 1-301(10), 3-309.4, 3-402, 3-410, 3-411, 4-113, 5-203

Scope: Subsection 10 mortgages as defined by tit. 14A, § 1-301(10).

Net Tangible Benefit Requirement for Refinancings: A creditor may not refinance any consumer loan to the same borrower into a subsection 10 mortgage unless the refinancing is in the borrower’s interest (tit. 14A, §§ 3-410, 3-411).

Mortgage Lending: OREGON

Or. Rev. Stat. §§ 86A.100, 86A.130, 86A.195

Scope: Mortgage loans as defined in § 86A.100(6).

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: Ability-to-repay evaluation is required for negatively amortizing loans (§ 86A.195).

Loan Counseling: None.

Disclosures: None.

Mortgage Lending: PENNSYLVANIA

63 Pa. Stat. and Cons. Stat. Ann. §§ 456.501 to 456.524 (West)

Scope: Covered loans as defined in 63 Pa. Stat. and Cons. Stat. Ann. § 456.503.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: Prohibited to engage in pattern or practice of making covered loans based upon consumer’s collateral without regard to ability to repay (63 Pa. Stat. and Cons. Stat. Ann. § 456.512).

Mortgage Lending: RHODE ISLAND

R.I. Gen. Laws §§ 34-25.2-1 to 34-25.2-15; R.I. Admin. Code § 4-10-3:5

Scope: Home loans and high-cost home loans as defined in § 34-25.2-4.

Net Tangible Benefit Requirement for Refinancings: Refinancing of existing home loan within 60 months of loan origination must provide borrower a reasonable, tangible net benefit (§ 34-25.2-5).

Ability to Repay: Lender to make no high-cost home loan without reasonable belief that borrower has ability to repay (§ 34-25.2-6).

Mortgage Lending: SOUTH CAROLINA

S.C. Code Ann. §§ 37-23-10 to 37-23-85

Scope: Consumer home loans and high-cost home loans as defined by § 37-23-20.

Net Tangible Benefit Requirement for Refinancings: Refinancing of existing consumer home loan within 42 months of loan origination must provide borrower a reasonable, tangible net benefit (§ 37-23-70).

Ability to Repay: Lender to make no high-cost home loan without reasonable belief that borrower has ability to repay (§ 37-23-40).

Mortgage Lending: TENNESSEE

Tenn. Code Ann. §§ 45-20-101 to 45-20-111

Scope: High-cost home loan as defined in § 45-20-102.

Net Tangible Benefit Requirement for Refinancings: Refinancing of existing home loan or high-cost home loan within 30 months of loan origination with a high-cost home loan must provide borrower a reasonable benefit (§ 45-20-103).

Ability to Repay: Lender to make no high-cost home loan without reasonable belief that borrower has ability to repay (§ 45-20-103).

Mortgage Lending: TEXAS

Tex. Const. art. 16, § 50; Tex. Fin. Code Ann. §§ 343.102, 343.201 to 343.206 (West)

Scope: Homesteads as covered by Tex. Const. art. 16, § 50; high-cost home loans as defined in § 343.201.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: Prohibited to engage in pattern or practice of making high-cost home loans based upon consumer’s collateral without regard to ability to repay (§ 343.204).

Mortgage Lending: UTAH

Utah Code Ann. §§ 61-2d-101 to 61-2d-113 (West)

Scope: High-cost mortgages as defined in § 61-2d-102.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: None.

Loan Counseling: None.

Disclosures: Lender of high-cost mortgages must provide borrower information prepared by a federal or state authority in a form intended to inform consumers about home loans or consumer credit on financing or educational resources on financing (§ 61-2d-112).

Mortgage Lending: VERMONT

Vt. Stat. Ann. tit. 9, § 104

Scope: First lien mortgages securing loans that charge more than four points or bear interest at a rate more than three percent over the rate set under Vt. Stat. Ann. tit. 32, § 3108.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: None.

Loan Counseling: None.

Disclosures: Lender must provide disclosures set forth in Vermont Banking Division Reg. B-98-02.

Negative Amortization: None.

Mortgage Lending: VIRGINIA

Va. Code Ann. §§ 6.2-1600, 6.2-1614, 6.2-1628

Scope: Mortgage loans as defined in § 6.2-1600.

Net Tangible Benefit Requirement for Refinancings: Lender may not knowingly or intentionally refinance a mortgage loan within 12 months unless the refinancing is in borrower’s best interest (§ 6.2-1614).

Ability to Repay: None.

Loan Counseling: None.

Disclosures: None.

Negative Amortization: None.

Limits on Points and Fees: None.

Prepayment Penalties: None.

Mortgage Lending: WASHINGTON

Wash. Rev. Code §§ 19.144.005 to 19.144.120

Scope: Residential mortgage loans as defined in § 19.144.010.

Net Tangible Benefit Requirement for Refinancings: None.

Ability to Repay: None.

Loan Counseling: None.

Disclosures: Disclosure of residential mortgage loan’s material terms required (§ 19.144.020).