Thread Options
#2255141 - 06/10/21 05:10 PM Eliminating Ceiling
dhutson Offline
New Poster
Joined: Sep 2015
Posts: 17
Our bank is working on revising the Real Estate Rate sheets and they have proposed eliminating the ceiling on our Real Estate loans on loans we originate going forward. For some reason, I thought there was a requirement of some kind to have a ceiling on real estate loans, but I can't find it.
Is there a reg that requires a ceiling on real estate loans? If not are there other considerations management should be aware of before they eliminate the ceiling?

Return to Top
Lending Compliance
#2255152 - 06/10/21 06:32 PM Re: Eliminating Ceiling dhutson
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 76,410
Galveston, TX
1026.30—Limitation on rates.
A creditor shall include in any consumer credit contract secured by a dwelling and subject to the Act and this part the maximum interest rate that may be imposed during the term of the obligation when:

(a) In the case of closed-end credit, the annual percentage rate may increase after consummation, or

(b) In the case of open-end credit, the annual percentage rate may increase during the plan.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2255165 - 06/10/21 11:52 PM Re: Eliminating Ceiling dhutson
dhutson Offline
New Poster
Joined: Sep 2015
Posts: 17
That's it!! Thanks!

Return to Top

Moderator:  Andy_Z