Indiana High Cost Loans
Does anyone have a link or specific information regarding the laws for High Cost loans in the state of Indiana?
What specifics are you looking for?
Here you go State: Indiana Question: Do restrictions on credit transactions vary depending on the rate charged? What terminology is used for higher rate accounts, e.g., supervised loans, high-cost loans. Short Answer: First Lien Loans: No, except for home loans that are subject to the Home Loan Practices Act.. Second Lien Loans: Yes, under the Indiana Uniform Consumer Credit Code, a lender may not contract for an interest in land as security if the loan is a "supervised loan" in principal amount of $3,300 or less. All Home Loans: The Home Loan Practices Act imposes restrictions on "home loans" and "high cost home loans." Cite: Ind. Code § 24-4.5-3-501; Ind. Code § 24-4.5-3-510; Ind. Code § 24-4.5-3-511; Ind. Code § 24-9-1-1; Ind. Code § 24-9-2-8; Ind. Code § 24-9-2-9; Ind. Code § 24-9-2-10. Law: Indiana Uniform Consumer Credit Code; Indiana Home Loan Practices Act. Explanation: First Lien Loans: The majority of the provisions of the Indiana Uniform Consumer Credit Code, including the finance charge provisions, do not apply to First Lien Loans. Ind. Code § 24-4.5-1-301;(17); Ind. Code § 24-4.5-3-105. Accordingly, First Lien Loans generally are unregulated. Second Lien Loans: "Supervised loan" means a consumer loan in which the rate of the loan finance charge, as permitted by Ind. Code § 24-4.5-3-508, exceeds 21% per year as determined according to the provisions on loan finance charge for consumer loans. Ind. Code § 24-4.5-3-501;(1). A lender may not contract for an interest in land as security for a supervised loan in which the principal amount is $3,300 or less. Ind. Code § 24-4.5-3-510;(1). Further, there are certain restrictions on the schedule of payments and maximum loan term that apply to closed-end supervised loans in which the principal amount is $3,300 or less. Ind. Code § 24-4.5-3-511;(1). Because a lender may not contract for an interest in land as security for a supervised loan in which the principal amount is $3,300 or less, the restrictions on the schedule of payments and maximum loan term do not become applicable in the context of a supervised loan secured by a lien on real property. The dollar amount of $3,300 is subject to change as of July 1 of each even numbered year based on changes in the Consumer Price Index. Ind. Code § 24-4.5-3-510;(2); Ind. Code § 24-4.5-3-511;(2). Most lenders in Indiana do not elect to make supervised loans and, instead, make loans under the 21% general alternative rate authority of the Indiana Uniform Consumer Credit Code. All Home Loans: The Home Loan Practices Act imposes restrictions on "home loans" and "high cost home loans." Under the Act, a "home loan" is defined to include: [A] loan, other than an open end credit plan or a reverse mortgage transaction, that is secured by a mortgage or deed of trust on real estate in Indiana on which there is located or will be located a structure or structures: (1) designed primarily for occupancy of one (1) to four (4) families; and (2) that is or will be occupied by a borrower as the borrower's principal dwelling. Ind. Code § 24-9-2-9. A "high cost home loan" is defined to include: [A] home loan with: (1) a trigger rate that exceeds the benchmark rate; or (2) total points and fees that exceed: (A) five percent (5%) of the loan principal for a home loan having a loan principal of at least forty thousand dollars ($40,000); or (B) six percent (6%) of the loan principal for a home loan having a loan principal of less than forty thousand dollars ($40,000). Ind. Code § 24-9-2-8. The "benchmark rate" is the interest rate established under 15 U.S.C. § 1602(aa) and implementing regulation 12 C.F.R. § 226.32. As of January 1, 2005, the benchmark rate was 8% APR over the yield on Treasury securities having comparable maturity periods for first lien loans and 10% APR over the yield on Treasury securities having comparable maturity periods for subordinate lien loans. 12 C.F.R. § 226.32;(a)(1)(i). "Points and fees" means the total of the following: (1) Point and fees (as defined in 12 CFR § 226.32;(b)(1) on January 1, 2004. (2) All compensation paid directly or indirectly to a mortgage broker, including a broker that originates a loan in the broker's own name. Ind. Code § 24-9-2-10;(a). As used in the definition of "points and fees," the term "compensation" does not include any of the following: (1) Bona fide discount points. (2) An amount not to exceed one and one-half (1½) points in indirect broker compensation, if the terms of the loan do not include a prepayment penalty that exceeds two percent (2%) of the home loan principle. (3) Reasonable fees paid to an affiliate of the creditor. (4) Interest prepaid by the borrower for the month in which the home loan is closed. Ind. Code § 24-9-2-10;(b). The Home Loan Practices Act does not apply to: (1) a loan made or acquired by a persons organized under or chartered under the laws of [Indiana], any other state, or the United States relating to banks, trust companies, savings associations, savings banks, credit unions, or industrial loan and investment companies; or (2) a loan: (A) that can be purchased by the Federal National Mortgage Association, the Federal Home Loan Mortgage Association, or the Federal Home Loan Bank; (B) to be insured by the United States Department of Housing and Urban Development; (C) to be guaranteed by the United States Department of Veterans Affairs; (D) to be made or guaranteed by the United States Department of Agriculture Rural Housing Service; (E) to be funded by the Indiana housing finance authority; or (F) with a principal amount that exceeds the conforming loan size for a single family dwelling as established by the Federal National Mortgage Association. Ind. Code § 24-9-1-1. History: Not Applicable Last Revision*: January 4, 2005 * The Last Revision date is the last time we made a SUBSTANTIVE revision to the answer. The date DOES NOT represent the last time we reviewed the answer. We review our answers on an ongoing basis. Copyright © 2001-2006 by CounselorLibrary.com, LLC. All rights reserve
Always remember to keep in mind what it is you need a savings and loan professional for. This will naturally assist you pinpointing the most ideal association currently available. It's generally helpful to begin your research concerning savings and loan associations online. -------------------- oliviaharis [url="http://foreclosures.gov-auctions.org"]Foreclosed Homes[/url]