Code of Massachusetts Regulations
209 CMR - DIVISION OF BANKS AND LOAN AGENCIES
Title 209 CMR 32.00 - Disclosure Of Consumer Credit Costs And Terms
SPECIAL RULES FOR CERTAIN HOME MORTGAGE TRANSACTIONS
Section 32.32 - Requirements for High Cost Mortgages

Universal Citation: 209 CMR 32.00 MA Code of Regs 32.32

Current through Register 1531, September 27, 2024

(1) Coverage.

(a) Except as provided in 209 CMR 32.32(l)(b), the requirements of 209 CMR 32.32 apply to a consumer credit transaction that is secured by the consumer's principal dwelling, and in which:
1.
a. The annual percentage rate at consummation will exceed by more than eight percentage points for first lien loans, or by more than nine percentage points for subordinate lien loans, the yield on Treasury securities having comparable periods of maturity to the loan maturity as of the 15th day of the month immediately preceding the month in which the application for the extension of credit is received by the creditor;

b. When calculating the annual percentage rate for adjustable rate loans, the creditor shall use the interest rate that would be effective once the introductory rate has expired;

2. Excluding either a conventional prepayment penalty or up to two bona fide discount points, the total points and fees payable by the consumer at or before loan closing will exceed the greater of 5% of the total loan amount, or $400; the $400 figure shall be adjusted annually on January 1st by the annual percentage change in the Consumer Price Index that was reported on the preceding June 1st; or

3. The annual percentage rate or fees exceed the limitations as described pursuant to 12 CFR 1026.32(a)(1).

(b) Compliance with 12 CFR 1026.32(a)(2) constitutes compliance with 209 CMR 32.32(l)(b).

(2) Definitions. Definitions presented pursuant to 12 CFR 1026.32(b) are incorporated by reference as 209 CMR 32.32(2); provided, however, private mortgage insurance is not excluded in the calculation of Points and Fees for the purpose of 209 CMR 32.32(l)(a)2.

(3) Disclosures. Compliance with 12 CFR 1026.32(c) constitutes compliance with 209 CMR 32.32(3).

(4) Limitations. Compliance with 12 CFR 1026.32(d) constitutes compliance with 209 CMR 32.32(4); provided, however, prepayment penalties are prohibited without exception; and a Due-on-demand Clause is not prohibited in cases where there is fraud or material misrepresentation by the consumer in connection with the loan that is not induced by the creditor, its employees, or agents; and under circumstances where the consumer fails to meet the repayment terms of the agreement for any outstanding balance and after the consumer has been contacted in writing and afforded a reasonable opportunity to meet the outstanding balance as outlined within the repayment terms of the agreement.

Disclaimer: These regulations may not be the most recent version. Massachusetts may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.