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#2229790 - 01/28/20 07:07 PM KY bank required to give Notice to Borrower
Cbigun Offline
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Joined: May 2016
Posts: 158
Is a KY bank required to give the Notice to Borrower/Prospective Borrower that is required by IN 24-5-23.5 if the property is located in IND or the person resides in Indiana? Everything just says "creditor" but I don't see where it indicates a "creditor located in Indiana", but it is an IND code...….

IC 24-5-23.5-8Creditor's duty to provide notice concerning homeowner protection unit's contact information and borrower's right to inspect settlement statement before closing; unit to prescribe form of notice; promotion of unit's contact information; information sharing; exemption from liability for disclosing suspected violation; report to legislative council of complaints received

Sec. 8. (a) This subsection applies with respect to a completed application for a mortgage loan that is received by a creditor after December 31, 2009. A creditor shall, not later than three (3) business days after receiving a completed written application for a mortgage loan from a borrower or prospective borrower, provide to the borrower or prospective borrower a notice, on a form prescribed by the homeowner protection unit under subsection (b), that includes the following:

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#2229915 - 01/30/20 03:04 PM Re: KY bank required to give Notice to Borrower Cbigun
Cbigun Offline
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Joined: May 2016
Posts: 158
No idea?

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#2230080 - 01/31/20 10:49 PM Re: KY bank required to give Notice to Borrower Cbigun
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,017
Bloomington, IN
I can't give you a definitive answer but it would be my opinion if the consumer and the property are located in IN then the notice would be required since it deals with the consumer's rights under IN law.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2230094 - 02/02/20 05:03 PM Re: KY bank required to give Notice to Borrower Cbigun
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 80,336
Galveston, TX
Creditor in that section is defined below and it does not exempt financial institutions, regardless of location. However, it would not apply to transactions not in IN. IN State law will not extend to transactions involving property not in IN.


IC 24-9-2-6
"Creditor"
Sec. 6. (a) "Creditor" means:
(1) a person:
(A) who regularly extends consumer credit that is subject to
a finance charge or that is payable by written agreement in
more than four (4) installments; and
(B) to whom the debt arising from a home loan transaction
is initially payable; or
(2) a person who brokers a home loan, including a person who:
(A) directly or indirectly solicits, processes, places, or
negotiates home loans for others;
(B) offers to solicit, process, place, or negotiate home loans
for others; or
(C) closes home loans that may be in the person's own name
with funds provided by others and that are thereafter
assigned to the person providing funding for the loans.
(b) The term does not include:
(1) a servicer;
(2) a state or local housing finance authority;
(3) any other state or local governmental or quasi-governmental
entity; or
(4) an attorney providing legal services in association with the
closing of a home loan.
As added by P.L.73-2004, SEC.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2230149 - 02/03/20 08:50 PM Re: KY bank required to give Notice to Borrower Cbigun
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,017
Bloomington, IN
I didn't think to go to the definitions. Thanks Randy..
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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