US 2003 Introduced Predatory Lending Legislation Resources in United States
US 2003 Introduced Predatory Lending Legislation Resources
| State: | Legislation: |
| Alabama | H.B. 29 Establishes the Consumer Equity Protection Act to provide mortgage loan consumers certain safeguards. |
| Arizona | H.B. 2414 Relates to home loans, prohibits certain activities. |
| H.B. 2468 Relates to home loans; includes general provisions, regulation of rates, high cost home loans, loan collection, acceleration and foreclosure. |
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| S.B. 1353 Places restrictions on lenders of covered loans and providers of insurance connected to covered loans, and creates a mechanism for the enforcement of the restrictions on covered loans. |
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| Arkansas | H.B. 2776 Prohibits predatory lending the home mortgage market. |
| California | A.B. 485 Authorizes counties and cities that have a specified population and that have adopted findings indicating the presence of significant predatory lending practices in their jurisdictions to adopt ordinances providing protection greater than existing state law. |
| S.B. 503 Authorizes a licensed person, subject to the laws regulating covered loans, to make consumer loans on the same terms and conditions as any financial institution chartered under the laws of the United States or any operating subsidiary of a federally chartered financial institution. |
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| Connecticut | S.B. 106 Failed Joint Favorable deadline 3/20/03 Allows municipalities to require loan counseling by the federal Department of Housing and Urban Development or municipally-approved counselors for borrowers of high cost home loans and to require that any municipality that requires such counseling to allow borrowers to obtain an opt-out of the counseling requirement, which may be signed by an approved counselor on a different day than the day on which the loan is signed. |
| S.B. 891 Strengthens the Abusive Home Loan Lending Practice Act. |
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| Georgia | H.B. 82 Relates to the Georgia Fair Lending Act, so as to exclude certain fees paid to federal government agencies that insure payment of home loans from the definition of points and fees. |
| H.B. 142 Amends the Georgia Fair Lending Act; provides for revisions to certain definitions; provides for changes in limitations on late payment charges; specifies when a reasonable, tangible net benefit occurs; clarifies that certain home loan refinancing shall not be presumed to be a flipping; provides for reasonable attorney’s fees; provides for liability of creditors for violations of the Act; provides for certain exceptions and limitations consistent with federal law; provides the Department of Banking and Finance with express authority to promulgate rules and regulations; provides for good faith reliance on guidance from the Department of Banking and Finance. |
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| H.B. 146 Relates to the Georgia Fair Lending Act, so as to exclude funding fees paid for loans made under any of the home loan programs of the United States Department of Veterans Affairs. |
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| H.B. 170 Repeals the Georgia Fair Lending Act. |
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| S.B. 28 Amends the Georgia Fair Lending Act; provides for revisions to certain definitions; provides for changes in limitations on late payment charges; specifies when a reasonable, tangible net benefit occurs; provides for reasonable attorney’s fees; to provide for certain exceptions and limitations consistent with federal law; provides the Department of Banking and Finance with express authority to promulgate rules and regulations; provides for good faith reliance on guidance from the Department of Banking and Finance. |
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| Hawaii | H.B. 374 Carried over to 2004 session Creates the Hawaii Home Loan Protection Act to protect the homes and equity of individual borrowers. |
| H.B. 1438 Prohibits mortgage brokers from engaging in predatory lending practices. |
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| H.C.R. 142 Passed House 4/11/03 Requests the Legislative Reference Bureau to study predatory home lending practices and laws. |
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| Illinois | H.B. 1971 Passed House 4/3/03 Creates the Predatory Lending Act. Provides only a short title. |
| H.B. 2382 Creates the High-cost Home Loan Abuse Prevention Act. Establishes prohibitions on abusive practices with respect to the making of home loans and high-cost home loans. Prohibits the financing of credit insurance, the use of excessive late fees and excessive points or fees, the selection of an inconvenient legal forum, and the refinancing of special mortgages. Prohibits the payment of mortgage proceeds directly to home improvement contractors. Establishes penalties for violations. Amends the Consumer Fraud and Deceptive Business Practices Act to provide that a violation of this Act constitutes a violation of that Act. |
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| S.B. 497 Creates the Abusive Home Loan Practice Act. Provides that a creditor making a home loan may not finance any credit life, credit disability, credit property, or credit unemployment insurance policy, any other life or health insurance premiums, or any payments for any debt cancellation or suspension agreement or contract. Limits the fees a creditor making a home loan may impose. Places additional restrictions on creditors that make high-cost home loans. Provides penalties for violations of the Act. Provides that the provisions of the Act are severable. |
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| Indiana | H.B. 1655 Restricts certain lending acts and practices. Establishes the mortgage fraud unit under the attorney general. Increases the bond requirements and certain fees for loan brokers. Provides that the securities commissioner may issue certain remedial orders against loan brokers. Allocates fee revenue to the housing finance authority and the mortgage fraud unit for education and enforcement activities. Appropriates seventy-five thousand dollars to conduct a study of mortgage foreclosure rates in Indiana. Provides limits on assignee liability. |
| H.B. 1698 Transfers licensing and regulation of loan brokers to the Department of Financial Institutions. Restricts certain lending acts and practices. Establishes the mortgage fraud unit under the attorney general. Increases mortgage recording and loan broker registration and renewal fees. Requires the housing finance authority to provide mortgage literacy training programs. Allocates increased revenue to the housing finance authority and the mortgage fraud unit. |
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| H.B. 1841 Restricts certain lending acts and practices. Establishes the mortgage fraud unit under the attorney general to enforce this act and investigate violations. Preempts regulation of covered acts and practices by political subdivisions. Increases mortgage recording fees and loan broker registration and renewal fees. Allocates increased revenue to the department of education, secretary of state, attorney general, and county recorders. |
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| S.B. 478 Passed Senate 3/4/03 Restricts certain lending acts and practices. Establishes the mortgage fraud unit under the attorney general to investigate and bring actions against a lender who engages in mortgage fraud. Preempts regulation of covered acts and practices by political subdivisions. Increases mortgage recording fees. Allocates increased revenue to the Indiana housing finance authority, attorney general, and county recorders. Allows the securities commissioner to enter orders of recission, restitution, and disgorgement, including interest at the rate of eight percent to loan brokers. |
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| Kentucky | H.B. 240 Creates new sections of KRS Chapter 367 to prohibit certain practices when lenders make high-cost home loans; prohibits the making of a high-cost home loan to a borrower who refinances when the new loan does not have a reasonable net benefit to the borrower; prohibits a creditor making a high-cost home loan to finance any points or fees; provides that no prepayment fees or penalties shall be included in the loan documents for a high-cost home loan; prohibits a high-cost home loan from containing a scheduled payment that is more than twice as large as the average of earlier scheduled payments; provides that no yield spread premium shall be paid to any broker by the creditor or other party in connection with a high-cost home loan; prohibits a high-cost home loan from including payment terms under which the outstanding principal balance will increase because the regular periodic payments do not cover the full amount of interest due; prohibits a high-cost home loan from containing a provision that increases the interest rate after default; provides that a high-cost home loan cannot be closed at any place other than the office of the lender, loan broker, attorney, title insurer, or similar place of business; provides that no more than two periodic payments can be consolidated and paid in advance from the loan proceeds provided to the borrower; prohibits a mandatory arbitration clause that limits the borrower’s right to judicial relief; provides that no high-cost home loan can require the borrower to waive his or her right to participate in class action remedies; provides that a creditor cannot make a high-cost home loan without certification that the borrower has received counseling on the advisability of the loan; prohibits a creditor from making a high-cost home loan without regard to repayment ability; restricts when a creditor may pay a contractor under a home improvement contract from the proceeds of a high-cost home loan; prohibits a creditor from charging a borrower any fees or other charges to modify, renew, extend, or amend a high-cost home loan or to defer any payment due under the terms of a high-cost home loan; prohibits a creditor from financing any credit insurance or any other life or health insurance; prohibits a creditor from recommending or encouraging default on an existing loan prior to the closing of a high-cost home loan that refinances any portion of the existing loan; restricts when a creditor may charge a late payment fee; prohibits a high-cost home loan that allows the creditor to accelerate the indebtedness; prohibits charging a fee for informing or transmitting to any person the balance due to pay off a high-cost home loan or to provide a release upon prepayment; requires the lender to provide certain disclosures at least three days prior to closing a high-cost home loan; allows the borrower to cure any default and reinstate a high-cost home loan; provides for a borrower’s claims against a seller and provide for liability of assignees and other holders in high-cost home loans; prohibits bad faith attempts to avoid application of this Act; and provide for civil and administrative actions. |
| Louisiana | H.B. 817 Defines annual percentage rate, borrower, closing, high cost home loan, home loan, points and fees, table-funded transaction, threshold, and total loan amount. Provides for mandatory disclosures, under penalty of nullity of the loan and mortgage, to borrowers by lenders making high cost home loans, including a warning of home loss upon default, housing counseling agency contacts, amount borrowed, loan terms, interest rate, monthly payment, closing costs, charges, fees, escrow, balloon payment, prepayment penalties, yield spread premiums, costs financed by loan, points, maximum interest rate and maximum monthly payment for variable rate loans, and credit insurance. Requires borrowers to execute certifications that the disclosures were received and requires lenders to submit the executed certifications to the borrower and to the Louisiana Housing Finance Agency at least seven days before the loan closing. Requires borrowers to execute certifications that the disclosures were received and requires lenders to submit the executed certifications to the borrower and to the Louisiana Housing Finance Agency at least seven days before the loan closing. Declares a violation to be an unlawful, unfair, or deceptive act or practice subjecting lenders to liability for actual, consequential, incidental, statutory, and punitive damages, and costs and attorney fees. Grants borrowers a right of rescission by way of offset or recoupment if the loan is being collected or foreclosed. Makes it a misdemeanor to knowingly violate the disclosure requirements and upon conviction provides for a fine not to exceed $1,000 or a prison sentence not to exceed six months, or both. Applies to loans made or entered into after the effective date of proposed law. |
| H.B. 835 Protects borrowers by regulating residential home mortgage lenders, prohibiting predatory lending practices, requiring disclosures, and providing a cause of action against lenders who exhibit a pattern of intentional violations. |
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| H.B. 1300 Prohibits home loan lenders from engaging in unfair or deceptive acts or practices which are defined as: recommending default on existing debt, influencing appraisers, leaving blanks on signed forms, financing credit insurance, flipping home loans with no benefit to the borrower, charging excessive late fees, unfair accounting of late fees, accelerating loans at their discretion, charging a fee for a payoff request, and failing to disclose yield spread premiums. |
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| H.C.R. 236 Passed House 6/19/03 Creates the Predatory Lending Prevention Task Force to address the issues and concerns relative to protecting Louisiana citizens from predatory lending practices. |
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| S.B. 107 Creates the “Predatory Lending Prevention Act” to regulate high cost home loans for “borrowers” – defined as any individual obligated to repay a loan, including co-borrowers, cosigners, or guarantors. |
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| S.B. 205 Prohibits a mortgage lender from contracting for or receiving a prepayment penalty if the unpaid balance of a residential mortgage is paid in full. |
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| Maryland | H.B. 864 Withdrawn from further consideration 2/24/03 Prohibits specified home loan lenders from financing specified credit insurance policies under specified circumstances; prohibits specified home loan lenders from charging specified fees under specified circumstances; prohibits specified home loan lenders from making high-cost home loans under specified circumstances; prohibits specified home loan lenders from paying specified home improvement contractors from loan proceeds under specified circumstances. |
| S.B. 574 Prohibits specified home loan lenders from financing specified credit insurance policies under specified circumstances; prohibits specified home loan lenders from charging specified fees under specified circumstances; prohibits specified home loan lenders from making high-cost home loans under specified circumstances; prohibits specified home loan lenders from paying specified home improvement contractors from loan proceeds under specified circumstances. |
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| Massachusetts | H.B. 1617 Prevents unfair and deceptive home loan practices by financial institutions in the commonwealth. |
| H.B. 2732 Prohibits abuse practices in home mortgage lending. |
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| H.B. 2915 Protects senior citizens from certain lending practices. |
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| S.B. 24 Establishes protections against predatory lending in the home lending market. |
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| Minnesota | S.F. 244 Enacts the Home Loan Protection Act of 2003. |
| Mississippi | H.B. 1448 Died in committee 2/4/03 Creates the Mississippi Predatory Lending Act; defines certain terms; prescribes certain procedures, limitations and restrictions regarding home loans, consumer home loans and consumer loans to protect borrowers; provides for enforcement of the provisions of this Act. |
| H.B. 1450 Died in committee 2/4/03 Creates the Mississippi Credit Insurance Consumer Protection Act; provides additional consumer protections in connection with the sale of credit insurance; requires additional disclosures to consumers in connection with the sale of credit insurance; clarifies the duties and responsibilities of creditors and related persons in connection with the sale of credit insurance. |
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| S.B. 2830 Died in committee 3/4/03 Creates the Mississippi Credit Insurance Consumer Protection Act; provides additional consumer protections in connection with the sale of credit insurance; requires additional disclosures to consumers in connection with the sale of credit insurance; clarifies the duties and responsibilities of creditors and related persons in connection with the sale of credit insurance. |
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| Missouri | S.B. 123 Regulates high-cost home loans and establishes certain lender reporting requirements. Prohibits specific practices with respect to high-cost home loans, including prepayment penalties, issuing high-cost loans stipulating negative amortization, loan flipping, making misleading statements about a residential home loan transaction, and compensating or intimidating appraisers to influence their judgment with regard to the value of the real estate. |
| Nevada | S.B. 348 Requires certain lenders to meet with borrowers to execute loan documents before transmitting documents to title insurer. |
| New Hampshire | H.B. 504 Limits the charges a lender may impose for the refinancing of a primary residence that has been mortgaged or refinanced within the prior five years and where the borrower is seeking a change of interest rate only. |
| S.B. 99 Passed Senate 4/3/03 Regulates certain mortgage loans and mortgage loan practices. |
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| New Jersey | A.B. 671 Prohibits certain lending practices commonly known as “predatory lending,” and directs the Department of Banking and Insurance and the Division of Consumer Affairs to develop and implement a program of consumer counseling to protect against predatory lending practices. |
| A.B. 1703 Establishes a framework for eliminating predatory financial practices in this state, by restricting those lenders who purposefully engage in patterns and practices of unfair treatment to vulnerable consumers commonly referred to as “predatory lending,” while recognizing that the subprime lending market, which provides loans to many borrowers who have impaired credit, performs a significant service to citizens of this state, particularly those in distressed urban areas. |
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| A.B. 3935 Makes various revisions to the “New Jersey Home Ownership Security Act of 2002.” |
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| A.B. 4028 S.B. 2797 Amends the New Jersey Home Ownership Security Act of 2002, which prohibits certain abusive lending practices commonly known as predatory lending. Amends the definition of points and fees so that these fees, when paid to affiliates of creditors and mortgage brokers, will now be excluded from the calculation of points and fees. |
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| S.B. 198 Combined with S.B. 1200, S.B. 1540, S.B. 2051 Prohibits certain lending practices in regard to home loans, covered home loans and high cost home loans, directs the Department of Banking and Insurance, in consultation with the Divisions of Consumer Affairs and Civil Rights, to develop and implement a program of consumer education to protect vulnerable consumers against practices regarding high-cost home loans, and provides that the department and the Division of Consumer Affairs shall enforce the provisions of the bill. |
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| S.B. 1200 Combined with S.B. 198, S.B. 1540, S.B. 2051 Prohibits certain abusive practices in the making of home loans. |
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| S.B. 1540 Combined with S.B. 198, S.B. 1200, S.B. 2051 Creates the New Jersey Home Ownership Security Act of 2002. |
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| S.B. 2051 Combined with S.B. 198, S.B. 1200, S.B. 1540 Concerns regulation of lending practices; prohibits certain abusive and predatory lending practices. |
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| S.B. 2795 Amends the New Jersey Home Ownership Security Act of 2002, which prohibits certain abusive lending practices commonly known as predatory lending. Amends the definition of points and fees so that these fees, when paid to affiliates of creditors and mortgage brokers, will now be excluded from the calculation of points and fees revises the definition of points and fees to provide that points and fees include all compensation that exceeds five percent of the total loan amount paid to a mortgage broker. Clarifies that damages available to a borrower for material violations of the law are the amount of the actual financial harm to the borrower, up to the original face value of the loan. Expands the authority of the commissioner of Banking and Insurance to promulgate regulations to effectuate the provisions of the law. |
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| New Mexico | H.B. 649 Relates to home loans; enacts the Home Loan Protection Act; prohibits certain practices by creditors; providing civil remedies. |
| S.B. 616 Relates to mortgage loans; amends and enacts certain sections of the mortgage loan company and loan broker act to include consumer finance companies, prohibits certain practices and preempts regulation by local governments. |
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| New York | A.B. 4980 Prohibits home improvement contractors from also acting on behalf of mortgage brokers; prohibits a mortgage broker from paying a home improvement contractor directly unless they perform their own inspection of the completed work. |
| A.B. 5057 Enacts the Home Equity Fraud Act to control improper activities by home improvement contractors and finance companies; prohibits mortgage brokers or agents from acting as home improvement contractors; provides additional protections for mortgagors and home owners. |
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| A.B. 5167 Requires mortgage brokers to disclose to each applicant at or before the time of application all of their compensation (amount, nature, and source); makes them agents to the borrowers with fiduciary duties to them; prohibits certain misrepresentations as to services, identification, compensation and provides for punishment therefor; provides for criminal (felony imprisonment and/or fine) and civil (treble damages and attorney’s fees) liability for violations of disclosure and other requirements; creates a defense to an action to foreclose a mortgage. |
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| A.B. 6873 Makes a scheme to defraud a person in obtaining a credit loan secured by an interest in real property a felony; applies to reverse redlining situations; provides for various felony grades depending on the amount of money involved. |
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| S.B. 269 Prohibits the state, its public authorities, its political subdivisions and districts from participating in business with financial institutions that engage in predatory lending or that facilitate predatory lending through the purchase, sale, securitization or underwriting of predatory loans; defines and relates to high cost home loans. |
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| S.B. 3623 Imposes certain requirements with respect to permissible interest rate discounts, interest rate increases and the use of negative amortization provisions in alternative mortgage instruments and removes the statutory provisions on graduated payment mortgage instruments which currently limit such provisions to mortgages on one to six family units given by a natural person. |
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| North Carolina | H.B. 917 Vetoed by governor 8/19/03 S.B. 685 Conforms the laws related to permissible interest rates for home loans secured by first mortgages, and authorizes the Legislative Research Commission to study issues related to banking and lending laws. |
| Oklahoma | H.B. 1407 Relates to consumer credit; defines terms; prohibits certain fees and charges on certain home loans; limits and prohibits certain practices on certain home loans; provides remedies for violations of act; limits certain investments by lenders; provides for applicability of act. |
| H.B. 1585 Creates the Oklahoma Home Ownership and Equity Protection Act. |
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| Oregon | H.B. 3088 Prohibits certain lending activities in connection with high-cost home loans. Creates private cause of action for damages. Applies to loans for which application is first made on or after January 1, 2004. |
| Pennsylvania | H.B. 2209 Eliminates a mortgage prepayment penalty for all residential mortgages, regardless of amount. |
| H.R. 166 Memorializes Congress to preserve state and local government authority to regulate predatory lending practices. |
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| S.R. 135 Urges the secretary of Banking to study residential lending practices in the state and submit a report to the General Assembly. |
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| Rhode Island | H.B. 5332 Provides that every lending institution or servicer that owns or services a loan, secured by a mortgage on property located in this state would provide to the obligor within three business days after receipt of a written request the exact payoff to the lender on the loan. Defines what a payoff statement is and negate liability for certain shortfalls. |
| H.B. 5522 Establishes the Rhode Island Home Loan Protection Act. |
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| H.B. 5726 Defines predatory lending practices and list prohibited practices regarding home loans. |
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| H.B. 5947 Memorializes Congress regarding federal preemption of predatory lending legislation. |
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| S.B. 836 Establishes the Rhode Island Home Loan Protection Act. |
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| S.B. 949 Establishes the Rhode Island Home Loan Protection Act. |
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| South Carolina | H.B. 3109 Prohibits a lender from knowingly engaging in flipping a home loan and defines flipping and home loan; limits the imposition of charges for points and fees in connection with a loan made by a consumer lender and a mortgage loan broker and defines points and fees and total loan amount; prohibits the financing of certain insurance premiums or debt cancellation or suspension payments in connection with a credit sale or loan secured by a home; relates to prepayment without penalty of certain loans, so as to increase the loan limit from $100,000 to $150,000; relates to unconscionability in consumer credit transactions, so as to provide that if, considering certain factors, the consumer is unable to make scheduled payments on the obligation when due or is permitted to enter into a transaction from which he derives no substantial benefit, the court may find the transaction unconscionable; relates to debtor remedies in certain loans, so as to include certain factors on which the court may base a finding that the loan is unconscionable. |
| H.B. 3125 H.B. 3616 S.B. 17 Enacts the South Carolina High-Cost and Consumer Home Loans Act; defines the subject loans; prohibits provisions in a high-cost home loan agreement for acceleration, balloon payment, negative amortization, interest increase, advance payments from loan proceeds, and additional fees in certain circumstances; requires a high-cost home loan lender to ensure that the borrower receives loan counseling and is reasonably able to meet his loan obligations; prohibits the financing of certain fees in connection with making a high-cost home loan and the charging of points and fees in connection with the refinancing of an existing high-cost home loan; regulates the payment of a home improvement contractor from the proceeds of a high-cost home loan; provides that a bad-faith violation of the high-cost home loan prohibitions or restrictions is an unfair or deceptive trade practice subject to Chapter 5 of Title 39; provides for enforcement by the administrator of the Department of Consumer Affairs, attorney general, commissioner of Banking, or a party to the loan; provides that the remedies and penalties for violations of the high-cost home loan restrictions and prohibitions are cumulative; provides for establishment of good faith by a high-cost home loan lender; provides certain restrictions and prohibitions in the making of a consumer home loan, including restrictions on the charging of points and fees and the prohibition of “flipping” a loan, financing certain insurance premiums, and encouraging default of a previous loan; provides that a violation of the consumer home loan restrictions or prohibitions is an unfair or deceptive trade practice; provides for enforcement by the administrator of the Department of Consumer Affairs, attorney general, commissioner of Banking, or a party to the consumer home loan; and provides for penalties and remedies, including attorneys’ fees, and to make them cumulative of and in addition to other remedies and penalties provided at law. |
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| H.B. 3428 Provides that political subdivisions may not regulate or otherwise limit the financial activities of a lender subject to state or federal jurisdiction; requires the administrator of the Department of Consumer Affairs to provide education programs to promote consumer financial and credit responsibility; prohibits certain lending activities and to require certain disclosures in connection with a covered consumer home loan; regulates the payment of a home improvement contractor from the proceeds of a home loan; provides that South Carolina law applies in a consumer loan transaction secured by the dwelling place of a legal resident of this state; includes the amount of a loan limit for prepayment without penalty; relates to the filing and posting of a maximum interest rate schedule by a consumer lender, so as to increase the filing fee to $45 and to earmark the increase for expenditure for consumer credit education programs; relates to authority to make a supervised loan, so as to prohibit the unlicensed taking of an assignment of or the direct collection of a supervised loan; and relates to prepayment without penalty of certain loans, so as to increase the loan limit from $100,000 to $150,000. |
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| Tennessee | H.B. 21 S.B. 203 Enacts the Tennessee Predatory Lending Prevention Act. |
| H.B. 1076 S.B. 743 Prohibits any mortgage or home equity loan closing being conducted 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 for the closing because of physical infirmity or other condition that is fully disclosed in writing and signed by the borrower prior to the closing. In the event that it is necessary to conduct the closing of a mortgage or home equity loan at the home of the borrower, such closing would be conducted by a licensed attorney or an independent third party, not related to the borrower or to the lender. Includes, as a violation warranting a residential lender, brokerage or service license or registration suspension or revocation the recommendation to a borrower or potential borrower that such borrower should default on a loan for the sole purposes of refinancing such loan at a profit to the licensee, if there is no benefit to the customer or borrower. |
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| H.B. 1720 S.B. 1799 Enacts the Tennessee Fair Lending Act. |
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| H.B. 1757 S.B. 1853 Limits the period for prepayment penalty to no longer than 24 months after date of consummation of loan of $100,000 or less for home improvements to owner-occupied residence where residence is collateral for loan. |
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| Texas | H.B. 1205 Amends certain practices relating to home loans, including debt cancellation or suspension agreements. |
| H.B. 3019 S.B. 1112 Makes a number of changes to the Finance Code in order to curb certain practices that may be considered predatory, including placing prohibitions on certain excessive fees, arbitration clauses that place a large burden on borrowers, home loans that exceed the rate threshold, high-cost home loans that are made without regard to the borrower’s creditworthiness, and the refinancing of a high-cost loan with another high-cost loan. Grants the state the authority: to determine which lenders are subprime lenders, to allow local authorities to help prosecute violators, and to require all loans made in the state to comply with certain state laws, regardless of where the lender is located. |
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| S.J.R. 52 Proposes a constitutional amendment limiting fees charged to home equity loan borrowers and prohibiting certain predatory practices. |
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| S.J.R. 56 Proposes a constitutional amendment simplifying home equity borrowing. |
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| Vermont | S.B. 83 Proposes to protect Vermont residents against predatory lending practices, and prevent those lenders from enjoying the privilege of doing business in the state. |
| Washington | S.B. 5671 Finds that abusive mortgage lending has become an increasing problem in this state, exacerbating the loss of equity in homes and causing the number of foreclosures to increase in recent years. Declares that, while the marketplace appears to operate effectively for conventional mortgages, too many homeowners find themselves victims of overreaching lenders who provide loans with unnecessarily high costs and terms that are unnecessary to secure repayment of the loan. Finds that as competition and self-regulation have not eliminated the abusive terms from home-secured loans, the consumer protection provisions of this act are necessary to encourage lending at reasonable rates with reasonable terms. |
| S.B. 5672 Provides that each licensee providing an application for a residential mortgage loan shall give a written notice to each applicant that provides at least three sources of consumer information developed by governmental or nonprofit organizations that would assist the applicant in determining what loan terms would be suitable for the applicant. Requires a licensee to provide, prior to the closing of a residential mortgage loan, a notice to each borrower of the annual percentage rate of the loan and whether or not the loan has a prepayment penalty. |
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| West Virginia | H.B. 3120 Excludes mortgage brokers from the credit services organization act and establishes additional consumer protections in the mortgage brokers licensing act. |
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