Mortgage Laws
Have you given a thought taking a mortgage loan in Idaho? You must be wondering
about the laws relating to mortgage prevalent there. We strive to provide you
all information on Idaho mortgage and the laws governing it.
The state statutory and common law governs mortgage law in Idaho. The federal or state law or agencies regulate mortgage.
Some important features of the mortgage law prevalent in Idaho
are:
- Idaho uses 'deed of trust' (or 'trust deed') as a mortgage.
- Title is technically given to a trustee to hold for the lender (called a beneficiary) under the deed of trust system.
- The legislature of the state of Idaho hereby declares and states that it does
not want any of the provisions of Title V, Part A - Mortgage Usury Laws, to
apply with respect to loans, mortgages, credit sales, and advances made in this
state.
- The provisions of Title V, Part A - Mortgage Usury Laws, Mortgages, Section
501(a)(1) shall not be applicable with respect to loans, mortgages, credit sales, and
advances made in this state.
Since July 1, 1996 the Idaho Residential Mortgage Practices Act
has become effective. This has brought forth some changes:
- The mortgage brokers and bankers (originators - as they are referred to) who provide loans
on Idaho residential properties are to be licensed.
- Earlier real estate brokers and salespersons who help homebuyers while applying
for a mortgage loan were exempt from mortgage law. But after the enactment
of this Act these people will have to obtain a mortgage broker license from
the Department of Finance.
- The Department has been given greater powers to restrict violation of federal
mortgage laws and in order to handle predatory mortgage lending.
- Prohibition of Idaho's cities and counties from implementing laws about the
financial and lending activities of companies which are under the jurisdiction
of the Department of Finance.
- The Idaho garnishment law has been changed too and now banks can select a
branch office for accepting all garnishments on the bank's behalf and the list
of all such branches is sent to the Department of Finance so that the department
can publish the list of all such branches in their website.
- Lenders may foreclose on deeds of trust using the non-judicial foreclosure
process.
