Summary of Text and Changes to Parts 80 and 82 of the General Regulations of the Banking Board
April 8, 2002
TO THE INDIVIDUAL OR INSTITUTION ADDRESSED:
RE: Final Adoption of Amendments to Parts 80 and 82 of the General Regulations of the Banking Board (Junior Lien Mortgage Loans and Alternative Mortgage Investments).
On March 13, 2002, the Banking Board adopted as final the attached amendments to Parts 80 and 82 of the General Regulations of the Banking Board. The Amendments became effective upon their publication in the State Register on April 3, 2002.
Parts 80 and 82 are amended so that they conform to Part 38 of the General Regulations of the Banking Board in several respects. First, they are amended to permit banks, mortgage bankers and mortgage brokers in the course of making junior lien and alternative mortgage loans to comply with the applicable disclosure and notification requirements through the use of electronic media as well as through written documents. A second conforming amendment to Parts 80 and 82 allows banks, mortgage bankers and mortgage brokers to also collect processing fees as is currently provided for in Part 38.
Next, both Parts 80 and 82 impose requirements on bridge loans by covered institutions. As part of these requirements, the phrase "processing fee" is amended such that the terms will be consistent with their usage in Part 38. Similarly, the language pertaining to bridge loans has been clarified to allow charging a fee for only the actual cost of an appraisal and credit report in conformity with Part 38.
Very truly yours,
Christine M. Tomczak, Esq.
Secretary to the Banking Board