Posted by JohnnyB on 7/3/07 11:09am
Msg #198317

New Laws In Rhode Island


New legislation was enacted in Rhode Island three months ago, and this has had a major impact on business.

Here is part of the of the new law:

"Prohibited acts and practices regarding high-cost home loans" :

1. No lender and loan broker shall directly finance points or fees which total is greater than 5% of the total loan amount or $800, whichever is greater.

2. No pre-payment fees or penalties shall be included in the loan documents for a High Cost Home Loan

This is only one and two, there are six other clauses with additional limits. It is a wonder how a lenders computer systems can monitor all these limitations.

Any comments on this?