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#577785 - 06/30/06 12:59 PM HELOC Question
upstateNY Offline
Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
Does anyone know if a national bank may make home equity line of credit loans in NYS without regard to Part 80, which requires that these loans be made on 1-4 family "owner-occupied" dwellings?

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#577786 - 06/30/06 01:48 PM Re: HELOC Question
PatrickG Offline
100 Club
PatrickG
Joined: Jun 2001
Posts: 165
Binghamton, NY, USA
We are a federal savings association. In 1987, the OTS General Counsel wrote "federal statutes and the Bank Board's Regulations preempt the application of the New York Regulations to federal associations...since Congress vested the Bank Board with exclusive authority to regulate federal associations." This includes the preemption of NYS regulations on consumer lending as well. We do not have to comply with Part 80. (See 12 CFR 560.2)

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#577787 - 06/30/06 05:56 PM Re: HELOC Question
upstateNY Offline
Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
Thanks, but as a national bank, we don't enjoy the same preemptions.

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#577788 - 07/03/06 01:16 PM Re: HELOC Question
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,881
Galveston, TX
If you are talking about this - Spitzer lost and the OCC won:

http://www.theclearinghouse.org/docs/001277.pdf
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