§ 24-9-4-11 — Notice to borrower

Indiana § 24-9-4-11

• Jurisdiction: Indiana
• Art. 9: HOME LOAN PRACTICES
• Ch. 4: Additional Prohibitions for High Cost Home Loans

Text

A creditor may not make a high cost home
loan unless the creditor has given the following notice, in writing, to
the borrower not later than the time that notice is required under 12
CFR 226.31(c):
"NOTICE TO BORROWER
YOU SHOULD BE AWARE THAT YOU MIGHT BE ABLE TO
OBTAIN A LOAN AT A LOWER COST. YOU SHOULD
COMPARE LOAN RATES, COSTS, AND FEES. MORTGAGE
LOAN RATES AND CLOSING COSTS AND FEES VARY
BASED ON MANY FACTORS, INCLUDING YOUR
PARTICULAR CREDIT AND FINANCIAL
CIRCUMSTANCES, YOUR EMPLOYMENT HISTORY, THE
LOAN-TO-VALUE REQUESTED, AND THE TYPE OF
PROPERTY THAT WILL SECURE YOUR LOAN. THE LOAN
RATE, COSTS, AND FEES COULD ALSO VARY BASED ON
WHICH CREDITOR OR BROKER YOU SELECT.
IF YOU ACCEPT THE TERMS OF THIS LOAN, THE
CREDITOR WILL HAVE A MORTGAGE LIEN ON YOUR
HOME. YOU COULD LOSE YOUR HOME AND ANY
MONEY YOU HAVE PAID IF YOU DO NOT MEET YOUR
PAYMENT OBLIGATIONS UNDER THE LOAN.
YOU SHOULD CONSULT AN ATTORNEY AND A
QUALIFIED INDEPENDENT CREDIT COUNSELOR OR
OTHER EXPERIENCED FINANCIAL ADVISER REGARDING
THE RATE, FEES, AND PROVISIONS OF THIS MORTGAGE
LOAN BEFORE YOU PROCEED. A LIST OF QUALIFIED
COUNSELORS IS AVAILABLE FROM THE INDIANA
HOUSING AND COMMUNITY DEVELOPMENT
AUTHORITY.
YOU ARE NOT REQUIRED TO COMPLETE THIS LOAN
AGREEMENT MERELY BECAUSE YOU HAVE RECEIVED
THIS DISCLOSURE OR HAVE SIGNED A LOAN
APPLICATION. REMEMBER, PROPERTY TAXES AND
HOMEOWNER'S INSURANCE ARE YOUR
RESPONSIBILITY. NOT ALL CREDITORS PROVIDE
ESCROW SERVICES FOR THESE PAYMENTS. YOU
SHOULD ASK YOUR CREDITOR ABOUT THESE
SERVICES.
ALSO, YOUR PAYMENTS ON EXISTING DEBTS
CONTRIBUTE TO YOUR CREDIT RATINGS. YOU SHOULD
NOT ACCEPT ANY ADVICE TO IGNORE YOUR REGULAR
PAYMENTS TO YOUR EXISTING CREDITORS.".

Legislative History

As added by P.L.73-2004, SEC.33. Amended by P.L.1-2006, SEC.416.