Oklahoma Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
Aug 30, 2017
6 min read
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| Citation | Topic | Requirement |
| Uniform Consumer Credit Code / Okla. Stat. Ann. tit. 14A, §3-411 | Borrower's Interest Worksheet | A lender may not refinance any consumer loan to the same borrower into a subsection 10 mortgage, unless the refinancing is in the borrower's interest. |
| Uniform Consumer Credit Code / Okla. Stat. Ann. tit. 14A, §3-309.4(1) | Disclosures for Subsection 10 Mortgage Loans | For each subsection 10 mortgage, the lender must provide the requirements for the Disclosures for Subsection 10 Mortgage Loans as outlined in Okla. Stat. Ann. tit. 14A, §3-309.4(1). The disclosure must be provided not less than 3 business days prior to consummation of the transaction. |
| Uniform Consumer Credit Code / Okla. Stat. Ann. tit. 14A, §4-113 | Insurance Notice to Obligor | A lender may not sell credit life, accident and health or unemployment insurance products in conjunction with a subsection 10 mortgage other than where the insurance premiums are calculated, earned and paid on a monthly or other regular, periodic basis without providing a separate disclosure with a copy acknowledged by the borrower no later than the time of closing. The does not apply to credit life, accident and health or unemployment insurance sold by the lender for which the borrower chooses the beneficiary and it is someone other than the lender. |
| Uniform Consumer Credit Code / Okla. Stat. Ann. tit. 14A, §3-309.4(5) | Balloon Payments Prohibition | A subsection 10 mortgage having a term of less than 5 years may not include terms under which the aggregate amount of the regular periodic payments would not fully amortize the outstanding principal balance. |
| Uniform Consumer Credit Code / Okla. Stat. Ann. tit. 14A, §3-410(2) | Borrower Repayment Ability | A lender extending subsection 10 mortgage loans may not engage in a pattern or practice of extending credit to a borrower based on the borrower's collateral without regard to the borrower's repayment ability, including the borrower's current and expected income, current obligations, and employment. There is a presumption that a lender has violated this requirement if the lender engages in a pattern or practice of making subsection 10 mortgages without verifying and documenting borrowers' repayment ability. A borrower will be presumed to be able to make the scheduled payments to repay the obligation if, at the time the loan is consummated, the total monthly debts of the borrower, including amounts owed under the loan, do not exceed 55% of the monthly gross income of the borrower as verified by the credit application, the financial statement of the borrower, a credit report, or financial information provided to the lender by or on behalf of the borrower. However, no presumption of inability to make the scheduled payments to repay the obligation will arise solely from the fact that the borrower's total monthly debts, including amounts owed under the loan, exceed 55% of the monthly gross income of the borrower. |
| Secure and Fair Enforcement for Mortgage Licensing Act / Okla. Stat. Ann. tit. 59, §2095.15(C) | Copies of Documents | If a borrower is unable to obtain or modify a loan for any reason and the borrower has paid for an appraisal, title report, or credit report, the mortgage broker or loan originator must give a copy of the appraisal, title report, or credit report to the borrower and transmit the originals to any other mortgage broker or lender to whom the borrower directs that the documents be transmitted. The mortgage broker or loan originator must provide the copies or transmit the documents within 5 business days after the borrower has made the request in writing. |
| Latson v. Eaton, 341 P.2d 247, 248 (Okla. 1959) | Document Preparation and Loan Closings | Practice of law is the preparation of “deeds, promissory notes, deeds of trust, [and] mortgages … by completing the standard and approved printed forms, coupled with the giving of advice or explanation as to legal effect thereof.” |
| Uniform Consumer Credit Code / Okla. Stat. Ann. tit. 14A, §3-306(3) | Loan Commitment | If a supervised lender makes a binding commitment to make a closed-end loan by allowing the borrower to draw on the lender and at the time the commitment is made the amount of the loan has not been determined, the lender must then give to the borrower a statement of the terms under which the loan will be made, including the rate of the loan finance charge calculated in accordance with the Uniform Consumer Credit Code. If the rate of the loan finance charge varies according to the amount of the loan, the lender must state the minimum and maximum annual percentage rates which would be applicable to the amounts which could be drawn pursuant to the commitment. If additional charges may be made, the lender must also state the conditions under which the charges may be made, the amount or method of computing the charges, and a brief description or identification of the charges. Within a reasonable time after the loan is made, and in any event on or before the due date of the first installment, the lender must again give the information required above. |
| Secure and Fair Enforcement for Mortgage Licensing Act / Okla. Stat. Ann. tit. 59, §2095.4 | NMLS Unique Identifier | The unique identifier of any mortgage broker or mortgage loan originator must be clearly shown on all residential mortgage loan application forms, solicitations or advertisements, including business cards or websites, and any other documents as established by the Administrator. |
| Uniform Consumer Credit Code / Okla. Stat. Ann. tit. 14A, §3-202(3) | Optional Insurance Disclosure | In connection with a mortgage loan, a lender may make an additional charge for consumer credit insurance providing life, accident, or health coverage if: (1) the insurance coverage is not a factor in the approval by the lender of the extension of credit, and this fact is clearly disclosed in writing to the borrower; and (2) in order to obtain the insurance in connection with the extension of credit, the borrower gives specific affirmative written indication of the borrower's desire to do so after receiving a written disclosure of the cost of the insurance. |
| Uniform Consumer Credit Code / Okla. Stat. Ann. tit. 14A, §3-202(3) | Right to Choose Insurance Provider | An additional charge may be made for property insurance if the lender furnishes a clear and specific statement in writing to the borrower, setting forth the cost of the insurance if obtained from or through the lender, and stating that the borrower may choose the person through whom the insurance is to be obtained. |
| Mortgage Act / Okla. Stat. Ann. tit. 46, §20(A) | Title Protection Notice | If a title protection document will be issued to a lender, the lender must give to the borrower, at the time of loan application, a written notice containing the following: (1) whether the title protection document will provide protection to the borrower; (2) that the borrower should seek independent, competent advice as to whether the borrower should obtain any additional title protection; and (3) that, in the event additional title protection is desired, it must be obtained by the buyer in a timely manner in order to avoid undue delay of the closing under the terms of the contract of sale. |
Uniform Consumer Credit Code / Okla. Stat. Ann. tit. 14A, §3-309.5 | Total-Annual-Loan-Cost Rate | The lender must provide the following disclosures: (1) a statement that the borrower is not obligated to complete the reverse mortgage transaction merely because the borrower has received these disclosures or has signed an application for a reverse mortgage loan; (2) a good faith projection of the total cost of the credit expressed as a table of “total-annual-loan-cost rates; (3) an itemization of loan terms, charges, the age of the youngest borrower, and the appraised property value; and (4) an explanation of the table of total-annual-loan-cost rates. These disclosures must be provided to the borrower at least 3 business days prior to: (1) consummation of a closed-end credit transaction; or (2) the first transaction under an open-end credit plan. |
| Uniform Consumer Credit Code / Okla. Stat. Ann. tit. 14A, §3-509 | Use of Multiple Agreements | A supervised lender may not use multiple agreements or split a loan (including any refinancing of those loans) into multiple loans with the intent of obtaining a higher rate or amount of loan finance charge than permitted under UCCC or to avoid disclosure of an annual percentage rate pursuant to the UCCC's disclosure and advertising provisions. |