Several repayment provisions in the note documenting a Section 32 mortgage origination are restricted in their scope — or outright prohibited.
Section 32 homeowner protections limiting mortgage note provisions
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Mortgage Loan Brokering & Lending
Learn the core concepts of consumer and business mortgage lending and brokering.
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The points and fees test for Section 32
Learn when a consumer-purpose mortgage falls under Section 32 limitations and disclosure rules.
Form-of-the-Week: Further Encumbrance Consent, and Note Enforcement Provisions — Forms 410 and 418-5
These forms are used by a prospective junior lender or carryback seller when the real estate is encumbered by an existing first mortgage containing a due-on clause, to obtain consent from the lender holding the mortgage to further encumber the property with a second mortgage, and by a loan broker or escrow officer when originating a mortgage with the lender or carryback seller, to include a guarantee, exculpatory or governing law provision in the promissory note.
The APR Coverage Test: Part 2
Part 2 of this video series provides examples for how MLOs can determine whether a transaction is subject to Section 32 compliance.
Form-of-the-Week: Deed of Trust & Assignment of Rents, and All-Inclusive Trust Deed Addendums — Forms 450, 442 and 443
An agent or escrow officer uses these forms when a seller of property carries back an all-inclusive note and trust deed (AITD) evidencing a principal debt which includes the balance owed on an existing mortgage and a payoff demand.
Mortgage Concepts: Timelines for lender RESPA disclosures
This video covers delivery of the Loan Estimate and Closing Disclosure.
May a second trust deed note holder on a call of a recourse note now unsecured due to foreclosure by the senior note holder, judicially collect the payment due on the call when monthly note payments are more than four years delinquent?
Piedmont Capital Management, LLC. v. McElfish
Form-of-the-Week: Agreement to Modify a Promissory Note, and Modification of the Promissory Note — Forms 426 and 425
These forms are used by a holder of a mortgage, their servicing agent or broker when arranging the modification of the mortgage note, to set forth the terms sought in the modification effort, to evidence the modification of the original note and state the change in terms of the note.
Form-of-the-Week: Trust Deed Listing, and Purchase Agreement for Note and Trust Deed — Forms 112 and 241
A trust deed broker uses these forms when employed by the holder of a trust deed note, to act as their exclusive agent to locate an investor and negotiate the terms for the sale of the note, and a loan broker uses these forms when arranging the purchase by a trust deed investor of an existing trust deed note held out for sale, to prepare an offer stating the price and conditions for purchase of the trust deed note.