1. Changes to Ohio HOEPA statutes:



Q. Is the borrower required to receive counseling if the loan hits HOEPA triggers AND the D/I > 50% of GMI?

HOEPA applies to refinanced loans, including loans where the borrower has previously paid off their home and is seeking a loan to tap into the resulting equity. HOEPA does not apply to home purchases or initial home construction (but does apply to home improvements). Thus the requirement the borrower receive credit counseling if the HOEPA loan results in monthly payments together with other debts (D/I) greater than 50% of his/her gross monthly income most definitely applies to a refinance.



2. Prepayment Penalties:



Q. Does this apply to the banking industry?

Yes

Q. For loans of $75M or less, that are arraigned by brokers and mortgage bankers, is it true no prepayment penalty can be assessed?

Yes; and

Q. If bank holds a mortgage that was arraigned by brokers or mortgage bankers does the rule above ($75M or less) still applies to the banking institution?


Yes

Q. If the bank originates the loan internally, is it true that this rule would not apply?

Yes

Q. Does this rule applies to both first and second mortgages?

Yes