Prohibited acts or practices in connection with higher-priced mortgage loans.

CFR · 2024-01-01 · US · Title 12

(a) (2) “Average prime offer rate” means an annual percentage rate that is derived from average interest rates, points, and other loan pricing terms currently offered to consumers by a representative sample of creditors for mortgage transactions that have low-risk pricing characteristics. The Board publishes average prime offer rates for a broad range of types of transactions in a table updated at least weekly as well as the methodology the Board uses to derive these rates. (3) Notwithstanding paragraph (a)(1) of this section, the term “higher-priced mortgage loan” does not include a transaction to finance the initial construction of a dwelling, a temporary or “bridge” loan with a term of twelve months or less, such as a loan to purchase a new dwelling where the consumer plans to sell a current dwelling within twelve months, a reverse-mortgage transaction subject to § 226.33, or a home equity line of credit subject to § 226.5b. (b) (1) (2) (i) The penalty is otherwise permitted by law, including § 226.32(d)(7) if (ii) Under the terms of the loan— (A) The penalty will not apply after the two-year period following consummation; (B) The penalty will not apply if the source of the prepayment funds is a refinancing by the creditor or an affiliate of the creditor; and (C) The amount of the periodic payment of principal or interest or both may not change during the four-year period following consummation. (3) (ii) (B) Insurance premiums described in paragraph (b)(3)(i) of this secti

official document · source cfr-2024 · id 12:§ 226.35