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2018 New Hampshire Revised Statutes
Title XXXV - Banks and Banking; Loan Associations; Credit Unions
Chapter 397-A - Licensing of Nondepository Mortgage Bankers, Brokers, and Servicers
Section 397-A:15 - Borrower's Rights.
Universal Citation: NH Rev Stat § 397-A:15 (2018)
397-A:15 Borrower's Rights. –
I. A borrower may pre-pay a first mortgage loan, in whole or in part, at any time. Partial prepayments of principal shall be applied on the due date of the next regularly scheduled payment. Prepayments in full ("payoff") shall be credited on the date received, except as provided under United States Department of Housing and Urban Development regulations.
II. The repayment terms of any loan made under the provisions of this chapter shall be conspicuously and clearly set forth in the note. Any prepayment penalty required of a borrower shall be printed in bold type in the note or in any addendum to the note.
III. The advance collection of interest from a borrower shall only be permitted upon the origination of a mortgage loan and shall be computed on a simple interest per annum basis. Prepaid interest shall not be collected for a period of greater than 31 days and such method may be used by the lender to achieve a common loan payment date for all of its loans, such as the first day of the month. Collection and application of a regularly scheduled monthly payment before the due date shall not be considered as the advance collection of interest on a mortgage home loan under this chapter.
IV. No licensee shall refuse a written, reasonable request from an applicant or borrower for a copy of documentation in the licensee's file relative to the borrower's loan.
V. Persons subject to or licensed under this chapter that service mortgage loans on real property located in the state of New Hampshire shall, within 5 days of receipt of a written request, provide a net payoff amount as of a specific date with a daily interest rate charge. Persons who fail to provide a net payoff amount within 5 days of receipt of a written request shall be assessed a fine of $100 per day up to a maximum penalty of $2500 per violation.
VI. In the case of open end loans, the note shall state the annual rate of simple interest, the daily applicable rate of interest, the maximum amount of credit, the payment selected by the borrower, and information as to the method used to compute the monthly payment, the related period or periods of repayment, and the monthly due date.
VII. Upon payment in full of the outstanding principal, interest, and other charges due on a mortgage loan, the holder shall mark plainly the note or a copy thereof with the words "PAID IN FULL" or "CANCELLED" and release or provide the borrower evidence to release any mortgage or security instrument no longer securing any indebtedness to the holder. If the original is retained by the lender, the original shall be returned within a reasonable period of time upon the written request of the borrower.
VIII. A copy of each disclosure and its method and timing of delivery shall be kept by the mortgage broker, mortgage banker, and mortgage servicer.
IX. Mortgage bankers, mortgage brokers, and mortgage servicers shall have a documented methodology, approved by a senior manager, that enables its employees, agents, and originators to make a reasonable determination that the borrower can repay a mortgage loan. The methodology shall reflect all relevant factors that have a bearing on the present and future capacity of the borrower to adequately service the debt. A mortgage banker, mortgage broker, and mortgage originator shall not offer or extend a mortgage loan to a borrower unless a reasonable lender would believe at the time the loan is made that the borrower will be able to make the scheduled payments associated with the loan. The loan file kept by the mortgage banker, mortgage broker, and mortgage originator shall document the analysis used to arrive at that conclusion.
X. A person, or its affiliate, brokering or funding a reverse mortgage shall not participate in, or be associated with, or employ any party that participates in or is associated with, any other financial or insurance activity and a mortgagor shall not be required, directly or indirectly, as a condition of obtaining a mortgage, to purchase any other financial or insurance product.
I. A borrower may pre-pay a first mortgage loan, in whole or in part, at any time. Partial prepayments of principal shall be applied on the due date of the next regularly scheduled payment. Prepayments in full ("payoff") shall be credited on the date received, except as provided under United States Department of Housing and Urban Development regulations.
II. The repayment terms of any loan made under the provisions of this chapter shall be conspicuously and clearly set forth in the note. Any prepayment penalty required of a borrower shall be printed in bold type in the note or in any addendum to the note.
III. The advance collection of interest from a borrower shall only be permitted upon the origination of a mortgage loan and shall be computed on a simple interest per annum basis. Prepaid interest shall not be collected for a period of greater than 31 days and such method may be used by the lender to achieve a common loan payment date for all of its loans, such as the first day of the month. Collection and application of a regularly scheduled monthly payment before the due date shall not be considered as the advance collection of interest on a mortgage home loan under this chapter.
IV. No licensee shall refuse a written, reasonable request from an applicant or borrower for a copy of documentation in the licensee's file relative to the borrower's loan.
V. Persons subject to or licensed under this chapter that service mortgage loans on real property located in the state of New Hampshire shall, within 5 days of receipt of a written request, provide a net payoff amount as of a specific date with a daily interest rate charge. Persons who fail to provide a net payoff amount within 5 days of receipt of a written request shall be assessed a fine of $100 per day up to a maximum penalty of $2500 per violation.
VI. In the case of open end loans, the note shall state the annual rate of simple interest, the daily applicable rate of interest, the maximum amount of credit, the payment selected by the borrower, and information as to the method used to compute the monthly payment, the related period or periods of repayment, and the monthly due date.
VII. Upon payment in full of the outstanding principal, interest, and other charges due on a mortgage loan, the holder shall mark plainly the note or a copy thereof with the words "PAID IN FULL" or "CANCELLED" and release or provide the borrower evidence to release any mortgage or security instrument no longer securing any indebtedness to the holder. If the original is retained by the lender, the original shall be returned within a reasonable period of time upon the written request of the borrower.
VIII. A copy of each disclosure and its method and timing of delivery shall be kept by the mortgage broker, mortgage banker, and mortgage servicer.
IX. Mortgage bankers, mortgage brokers, and mortgage servicers shall have a documented methodology, approved by a senior manager, that enables its employees, agents, and originators to make a reasonable determination that the borrower can repay a mortgage loan. The methodology shall reflect all relevant factors that have a bearing on the present and future capacity of the borrower to adequately service the debt. A mortgage banker, mortgage broker, and mortgage originator shall not offer or extend a mortgage loan to a borrower unless a reasonable lender would believe at the time the loan is made that the borrower will be able to make the scheduled payments associated with the loan. The loan file kept by the mortgage banker, mortgage broker, and mortgage originator shall document the analysis used to arrive at that conclusion.
X. A person, or its affiliate, brokering or funding a reverse mortgage shall not participate in, or be associated with, or employ any party that participates in or is associated with, any other financial or insurance activity and a mortgagor shall not be required, directly or indirectly, as a condition of obtaining a mortgage, to purchase any other financial or insurance product.
Source. 2016, 289:1, eff. Aug. 20, 2016.
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