Posted By: Jan94
ARMs Max Interest Rate - 07/03/06 07:53 PM
I realize that there is a federal preemption of state law on first lien ARMs wherein there is no limit on the interest rate or fees we can charge. The reason I'm questioning this is because we used the Credit Card State Bank statute. It allows more favorable rates and fees on small loans. That particular statute allows a 21.00% maximum. However, we are using 24.00% as the maximum on our ARMs. Do you know whether or not we have to consistently use that same statute for different loan types - or can we use one statute for one category of loans and another statute for another category of loans (such as junior lien- ARMs)? Thank you.