2007 House Bill 5296 ↩

House Roll Call 539: Passed

To prohibit a mortgage lender from making a "high cost" (subprime) home loan without ensuring that the borrower had received counseling from an approved nonprofit on the advisability of the loan; charging prepayment fees or penalties; paying a contractor for home improvements from the proceeds of a loan unless the payment was payable to the borrower, or to both, or to an escrow account; charging a fee to modify, renew, extend, or amend a loan or defer any payments; financing points or fees in excess of 2 percent of the loan amount; or increasing the interest rate after a default. Payments on a "high cost loan" would have to cover all the interest due.