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Freddi
Guest
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 Posted: Thu Jan 19, 2006 1:14 pm Post subject: what is Consumer Mortgage Protection Act |
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Hi, I wanted to know about what types of transactions are included as mortgage loan transactions under the Consumer Mortgage Protection Act?
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Blythe
Guest
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| Posted: Thu Jan 19, 2006 1:37 pm Post subject: |
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| Hi as far as I know, this act covers home improvement contracts which are secured by first liens, loan transactions, subordinate liens or other liens and land contracts on real property and used by the borrower as its principal dwelling, and which real property is designed for occupancy by 4 or fewer families. |
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 Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1602
Location: MASSACHUSETTS
149.70 Dollars($)
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| Posted: Thu Jan 19, 2006 2:13 pm Post subject: |
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Hi Freddi and Blythe,
Blythe what you said is very true plus in addition to it there are few more thing like,
the statute does not cover the following loan transactions:
- Loans in which the loan proceeds are used to purchase a dwelling. These loans are sometimes referred to as "purchase money loans."
- Reverse mortgages.
- Open-end credit in which the lender reasonably expects the borrower to access multiple advances.
In essence, the Act covers first lien mortgage loans (other than those to acquire a dwelling), refinance transactions, subordinate lien mortgage transactions, home improvement contracts in which a first or subordinate lien is taken on real property (other that home equity lines of credit), and land contracts in refinance transactions.
Freddi do let us know if you have any other doubts also.
God Bless You,
Thanks,
Samatha
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Freddi
Guest
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| Posted: Thu Jan 19, 2006 2:49 pm Post subject: |
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| Thanks, the information you people have provided will help a lot and could you let me know one more thing as to if commercial loans are also subject to the provisions of the Act? |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1602
Location: MASSACHUSETTS
149.70 Dollars($)
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| Posted: Thu Jan 19, 2006 2:57 pm Post subject: |
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You are more than welcome to put all your queries and we will try our best to answer them.
The fact is that commercial loans are subject to the Act only to the extent a commercial loan transaction includes a lien on residential real property.
God Bless You,
Thanks,
Samatha
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Freddi
Guest
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| Posted: Thu Jan 19, 2006 3:06 pm Post subject: |
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Thanks Samantha and Blythe, I was really confused about this act but the information you have provided was all I needed to get a grip over it. 
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