§ 24-9-3-6 — Fee prohibited for payoff statement or written release; prepayment penalty prohibited for adjustable rate home loans; short sale; acknowledgment of offer; acceptance or rejection; liability for failure to respond

Indiana § 24-9-3-6

• Jurisdiction: Indiana
• Art. 9: HOME LOAN PRACTICES
• Ch. 3: Prohibited Lending Practices Generally

Text

(a) A creditor may not charge a fee for
informing or transmitting to a person the balance due to pay off a home
loan or to provide a written release upon prepayment. A creditor must
provide, in writing, a payoff balance not later than seven (7) business
days (excluding legal public holidays, Saturdays, and Sundays) after
the request is received by the creditor. A payoff statement provided by
a creditor under this subsection must show the date the statement was
prepared and itemize the unpaid principal balance and each fee, charge,
or other sum included within the payoff amount. For purposes of this
subsection, "fee" does not include actual charges incurred by a creditor
for express or priority delivery of home loan documents to the borrower
if such delivery is requested by the borrower.
(b) This subsection applies to a home loan, or the refinancing or
consolidation of a home loan, that:
(1) is closed after June 30, 2009; and
(2) has an interest rate that is subject to change at one (1) or more
times during the term of the home loan.
A creditor in a transaction to which this subsection applies may not
contract for and may not charge the borrower a prepayment fee or
penalty.
(c) This subsection applies to a home loan with respect to which any
installment or minimum payment due is delinquent for at least sixty
(60) days. The creditor, servicer, or the creditor's agent shall
acknowledge a written offer made in connection with a proposed short
sale not later than five (5) business days (excluding legal public
holidays, Saturdays, and Sundays) after the date of the offer if the offer
complies with the requirements for a qualified written request set forth
in 12 U.S.C. 2605(e)(1)(B). The creditor, servicer, or creditor's agent
is required to acknowledge a written offer made in connection with a
proposed short sale from a third party acting on behalf of the debtor
only if the debtor has provided written authorization for the creditor,
servicer, or creditor's agent to do so. Not later than thirty (30) business
days (excluding legal public holidays, Saturdays, and Sundays) after
receipt of an offer under this subsection, the creditor, servicer, or
creditor's agent shall respond to the offer with an acceptance or a
rejection of the offer. The thirty (30) day period described in this
subsection may be extended for not more than fifteen (15) business
days (excluding legal public holidays, Saturdays, and Sundays) if,
before the end of the thirty (30) day period, the creditor, the servicer,
or the creditor's agent notifies the debtor of the extension and the
reason the extension is needed. As used in this subsection, "short sale"
means a transaction in which the property that is the subject of a home
loan is sold for an amount that is less than the amount of the borrower's
outstanding obligation on the home loan. A creditor, a servicer, or a
creditor's agent that fails to respond to an offer within the time
prescribed by this subsection is liable in accordance with 12 U.S.C.
2605(f) in any action brought under that section.

Legislative History

As added by P.L.73-2004, SEC.33. Amended by P.L.145-2008, SEC.29; P.L.52-2009, SEC.6; P.L.89-2011, SEC.27; P.L.27-2012, SEC.32.