California Enacts Predatory Lending Statute
- Topics:
- Commercial Litigation
- Tags:
- Akin Gump Strauss Hauer & Feld,
- Capital Structures,
- Consumer Credit,
- Consumer Loan,
- Finance,
- Law,
- Mortgages
- Source:
- Akin Gump Strauss Hauer & Feld
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Overview: The article talks about the bill that was ultimately signed into law and was substantially revamped (and is in many respects similar to the Homeowners Equity Protection Act (HOEPA)), and was itself later amended by California Assembly Bill 344. California has now joined the growing national movement to restrict certain loan activities at the state level. Comparisons of the new law to HOEPA will be set forth in footnotes where appropriate. The new law imposes various requirements on “covered loans.” Under the new law, “covered loans” are defined as consumer loans secured by one-to-four unit residential properties used or intended to be used or occupied as the principal dwelling of the consumer. The law excludes from the definition of consumer loans reverse mortgages, open-end lines of credit, consumer credit transactions secured by rental property or second homes, and bridge loans with a maturity of less than one year (if the purpose of the bridge loan is the acquisition or construction of a dwelling intended to become the consumer’s principal dwelling).
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Format: PDF | Size: 189KB | Date: Jul 2002 | Pages: 5
