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#313275 - 02/07/05 04:39 PM HOEPA vs Part 41
upstateNY Offline
Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
As a national bank operating in New York State should I be concerned about the lower thresholds for high cost loans under Part 41? My understanding is that the APR trigger under 41 is 8 percentage points as opposed to 10 under HOEPA. And that the total points and fee trigger is 5% under Part 41 as opposed to 8% under HOEPA.
Any takers on this one?

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#313276 - 02/07/05 04:57 PM Re: HOEPA vs Part 41
PatrickG Offline
100 Club
PatrickG
Joined: Jun 2001
Posts: 165
Binghamton, NY, USA
The OTS General Counsel holds that the Home Owners' Loan Act occupies the entire field of regulation for federal svaings associations. For federal savings associations, Part 41 is preempted.

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#313277 - 02/07/05 05:06 PM Re: HOEPA vs Part 41
upstateNY Offline
Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
Quote:

The OTS General Counsel holds that the Home Owners' Loan Act occupies the entire field of regulation for federal svaings associations. For federal savings associations, Part 41 is preempted.



So, you are following HOEPA, but not Part 41? And did OTS General Counsel put this in writing for you? Thanks

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#313278 - 02/07/05 05:25 PM Re: HOEPA vs Part 41
PatrickG Offline
100 Club
PatrickG
Joined: Jun 2001
Posts: 165
Binghamton, NY, USA
Our Counsel asked for an letter from the OTS and we got one so we follow only the federal regulations for mortgage lending.

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