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Consumer Credit Regulation: Kan. Stat. Ann. §§ 16a-2-101 to 16a-9-102 (Kansas Uniform Consumer Credit Code).

Scope: Consumer credit transactions, including sales and loans. § 16a-2-102.

Licensure requirements: None.

Credit terms: In a closed-end consumer credit sale, a seller may charge a finance charge at any rate agreed to by the parties. § 16a-2-201(2). In a consumer credit sale made pursuant to open-end credit, a seller may charge a finance charge at any rate agreed to by the parties. § 16a-2-202(1).

Consumer Credit Regulation: Ky. Rev. Stat. Ann. §§ 371.210 to 371.330 (West) (Installment Sales Contracts).

Scope: Installment sales of goods (not including motor vehicles) and services purchased primarily for personal use pursuant to retail installment contract or retail charge agreement. § 371.210.

Licensure requirements: None.

Credit terms: A retail charge agreement may charge a time price differential for the privilege of paying in installments. § 371.300(3).

Restrictions on points or prepaid interest: None.

Restrictions on length of term: None.

Consumer Credit Regulation: La. Stat. Ann. §§ 9:3511 to 9:3577.5 (Consumer Credit Code).

Scope: Consumer credit sales, defined as a sale of goods or services for personal, family, or household purposes in which purchaser is permitted to defer all or part of purchase price or other consideration in two or more installments. Excludes leases of personal property where lessee agrees to pay a sum equal to or greater than the initial value of the leased property and will become or has the option to come its owner for no additional consideration or nominal consideration. § 9:3516(12).

Consumer Credit Regulation: La. Stat. Ann. §§ 6:969.1 to 6:969.54 (Motor Vehicle Sales Finance Act).

Scope: Motor vehicle credit transactions. Excludes extensions of credit to business entities, including government or governmental agencies or instrumentalities, extensions of credit primarily for business, commercial or agricultural purposes, and open-end credit transactions, including revolving loan and lender credit card transactions that may involve the secured purchase money financing of a motor vehicle. § 6:969.3.

Truth in Lending: 9.10.4.1 Coverage

Periodic statements are required as of January 10, 2014, for all closed-end residential mortgage loans secured by a dwelling.1265 Section 1638(g) should apply to Property Assessed Clean Energy (PACE) loans.1266 The issue of whether PACE loans constitute “credit” under TILA is discussed in § 2.7.9.3, supra.

Truth in Lending: 9.6.2.1 General

HOEPA defines a special class of covered mortgage loans, including first and subordinate lien loans626 by setting up triggers (originally two but now three) for the special protections of the law. These triggers are found in the Truth in Lending definition section at 15 U.S.C. § 1602(bb). The original version of HOEPA included just an APR trigger and a points and fees trigger, but the Dodd-Frank Act creates a third trigger based solely on the timing or amount of prepayment penalties.627

Consumer Bankruptcy Law and Practice: 12.9.2 Assumption of a Lease or Executory Contract in Chapter 13

In many cases, a debtor will have much to gain from assumption of an executory contract or unexpired lease. For example, if moving would cause a hardship, or if a residential lease has favorable terms, it is usually advantageous to keep it in effect. This may be particularly true in a rent control jurisdiction499 or in public housing, as the debtor’s occupancy may not otherwise be terminable even at the end of the lease term.

Truth in Lending: 9.6.10.1 Introduction

HOEPA includes substantive protections that ban certain terms for covered high-cost loans. In addition to triggering civil liability and special damage remedies,802 inclusion of a prohibited term constitutes a failure to deliver required disclosures for the purposes of rescission under TILA.803 Most of these prohibitions are not absolute. Care should be taken to make sure that where an exception is invoked, the creditor has met the preconditions to the exception.

Truth in Lending: 9.10.8 Pyramiding of Late Fees

Effective January 10, 2014, the CFPB adopted a rule similar to the prior FRB rule (discussed in companion materials), but removed any reference to a “full” payment and instead applied the requirement only to “a periodic payment.”1390 The distinction between the meanings for “full” payment and “periodic” payment intended by this change in the regulations is unclear.

Truth in Lending: 9.5.4.5.1 General

Unless an exemption applies (described below), creditors of higher-priced mortgage loans (HPMLs) must establish an escrow account for the payment of property taxes and insurance.503 The FRB’s original mandatory escrow rule applies to higher-priced mortgage loans if the loan application was received on or after April 1, 2010 (October 1, 2010, for manufactured homes).504 This rule was substantially modified by the FRB, pursuant to the Dodd-Frank Act, by setting a higher threshold for mandatory

Fair Credit Reporting: 8.5.5 Enforcement of Right

The 2003 FACTA amendments to the FCRA appear to have eliminated the ability of consumers to privately enforce the adverse action notice requirements of the FCRA. As part of those amendments, Congress added the following language to 15 U.S.C. § 1681m:

(8) Enforcement

Truth in Lending: 9.3.2.4 The Definition of Loan Originator

The CFPB’s rule largely builds off of the FRB’s prior rule, adding detail and exceptions. This subsection only reviews the ways in which the CFPB’s rule differs from the preexisting rule issued by the FRB. Practitioners seeking to understand the scope of the CFPB’s definition of a loan originator should review the discussion of the FRB’s rule in § 9.3.2.4.1 of the archived version of Chapter 9 available online as companion material to this treatise.

Mortgage Lending: C.1 Overview of RESPA and Regulation X Statutory, Administrative, and Legislative History Archive

The Real Estate Settlement Procedures Act (RESPA) statutory and administrative materials available as part of this treatise include the Act, which is codified in the United States Code, and its implementing regulation, Regulation X, which is codified in the Code of Federal Regulations. Both the Act and Regulation X have been amended multiple times. In addition, the regulators responsible for implementing the Act have issued numerous items of guidance over the years.

Mortgage Lending: Introduction and Listing of Provisions

This section reprints selected provisions of the Real Estate Settlement Procedures Act (RESPA) relevant to loan origination. Amendments to some of these provisions were made by the Dodd-Frank Wall Street Reform and Consumer Protection Act Pub. L. No. 111-203, 124 Stat. 1376 (2010) (hereinafter the Dodd-Frank Act). With the exception of changes to 12 U.S.C. §§ 2603–2605, these RESPA amendments are found in Title X of the Dodd-Frank Act and thus became effective on July 21, 2011.

Mortgage Lending: § 2601. Congressional findings and purpose [§ 2]

(a) The Congress finds that significant reforms in the real estate settlement process are needed to insure that consumers throughout the Nation are provided with greater and more timely information on the nature and costs of the settlement process and are protected from unnecessarily high settlement charges caused by certain abusive practices that have developed in some areas of the country.

Mortgage Lending: § 2605. Servicing of mortgage loans and administration of escrow accounts [§ 6]

(a) Disclosure to applicant relating to assignment, sale, or transfer of loan servicing

Each person who makes a federally related mortgage loan shall disclose to each person who applies for the loan, at the time of application for the loan whether the servicing of the loan may be assigned, sold, or transferred to any other person at any time while the loan is outstanding.

* * *

(f) Damages and costs

Mortgage Lending: § 2606. Exempted transactions [§ 7]

(a) In general

This chapter does not apply to credit transactions involving extensions of credit—

(1) primarily for business, commercial, or agricultural purposes; or

(2) to government or governmental agencies or instrumentalities.

(b) Interpretation