§ 6.1-330.71. (Repealed effective October 1, 2010) Charges on subordinatemortgage loans by certain lenders.
A. 1. Any person, other than lenders enumerated in § 6.1-330.73, may chargeadd-on interest that results in an annual yield of not more than eighteenpercent upon loans secured in whole or in part by a subordinate mortgage ordeed of trust on residential real estate improved by the construction thereonof housing consisting of one to four family dwelling units. For the purposesof this chapter, a subordinate mortgage or deed of trust is one subject to aprior mortgage or deed of trust in existence at the time of the making of theloan secured by such subordinate mortgage or deed of trust. An add-oninterest loan may be made only under this subsection and shall not exceed aperiod of five years and one month.
2. The lender may also impose a loan fee not exceeding two percent of theprincipal amount of the loan provided that such loan fee shall not be imposedmore often than once each eighteen months except to the extent that new moneyis advanced within such eighteen-month period by a renewal or additionalloan. New money shall be money advanced in excess of the outstandingprincipal balance at the time such new advance is made. These provisionsshall apply whether such loan fee is payable directly to the lender or to athird party in connection with such loan.
B. No charge, other than actual costs documented to the applicant andexpended for a credit report and an appraisal of the real estate conducted inconnection with the loan application, may be made if the loan is not made.Such charge shall not exceed one percent of the amount of the loan appliedfor; but in no event shall such charge exceed fifty dollars or one-half ofsuch costs whichever is less. Such charge may be made only if the lendercommits to make the loan. Such commitment shall be in writing and signed bythe lender or a person the lender has authorized to execute such documents.
C. The provisions of this section shall not apply to any loan by any lenderenumerated in § 6.1-330.73.
D. 1. Any loan secured by a subordinate mortgage or deed of trust on suchresidential real estate where the interest is charged at an annual interestrate on the unpaid balance thereof may be lawfully enforced at the annualinterest rate stated in the contract of indebtedness on the principal amountof the loan. Such annual interest rate may vary in accordance with anexterior standard.
2. In addition to the annual interest rate permitted by subdivision 1 of thissubsection, the lender may charge the borrower a loan fee not exceeding fivepercent of the principal amount of the loan. The lender may also charge theborrower with the actual costs of the loan as permitted by § 6.1-330.72.
3. The loan fee permitted by subdivision 2 of this subsection shall not beimposed more often than once each eighteen months except to the extent thatnew money is advanced within such eighteen-month period by a renewal oradditional loan. Such loan fee may only be reimposed by the lender upon aborrower in connection with the refinancing of a loan made pursuant to thissubsection.
E. The rates, charges and other provisions permitted or required by thissection or by § 6.1-330.72 shall apply to all loans secured by a subordinatemortgage, including without limitation single maturity, amortizing and loanssecured by a credit line deed of trust as permitted by § 55-58.2.
F. Except for the loan fee permitted in this section, no discount, initialinterest, points or charges by any other name may be collected, charged oradded to a loan secured by a subordinate mortgage or deed of trust upon suchresidential real estate.
§ 6.1-330.71. (Repealed effective October 1, 2010) Charges on subordinatemortgage loans by certain lenders.
A. 1. Any person, other than lenders enumerated in § 6.1-330.73, may chargeadd-on interest that results in an annual yield of not more than eighteenpercent upon loans secured in whole or in part by a subordinate mortgage ordeed of trust on residential real estate improved by the construction thereonof housing consisting of one to four family dwelling units. For the purposesof this chapter, a subordinate mortgage or deed of trust is one subject to aprior mortgage or deed of trust in existence at the time of the making of theloan secured by such subordinate mortgage or deed of trust. An add-oninterest loan may be made only under this subsection and shall not exceed aperiod of five years and one month.
2. The lender may also impose a loan fee not exceeding two percent of theprincipal amount of the loan provided that such loan fee shall not be imposedmore often than once each eighteen months except to the extent that new moneyis advanced within such eighteen-month period by a renewal or additionalloan. New money shall be money advanced in excess of the outstandingprincipal balance at the time such new advance is made. These provisionsshall apply whether such loan fee is payable directly to the lender or to athird party in connection with such loan.
B. No charge, other than actual costs documented to the applicant andexpended for a credit report and an appraisal of the real estate conducted inconnection with the loan application, may be made if the loan is not made.Such charge shall not exceed one percent of the amount of the loan appliedfor; but in no event shall such charge exceed fifty dollars or one-half ofsuch costs whichever is less. Such charge may be made only if the lendercommits to make the loan. Such commitment shall be in writing and signed bythe lender or a person the lender has authorized to execute such documents.
C. The provisions of this section shall not apply to any loan by any lenderenumerated in § 6.1-330.73.
D. 1. Any loan secured by a subordinate mortgage or deed of trust on suchresidential real estate where the interest is charged at an annual interestrate on the unpaid balance thereof may be lawfully enforced at the annualinterest rate stated in the contract of indebtedness on the principal amountof the loan. Such annual interest rate may vary in accordance with anexterior standard.
2. In addition to the annual interest rate permitted by subdivision 1 of thissubsection, the lender may charge the borrower a loan fee not exceeding fivepercent of the principal amount of the loan. The lender may also charge theborrower with the actual costs of the loan as permitted by § 6.1-330.72.
3. The loan fee permitted by subdivision 2 of this subsection shall not beimposed more often than once each eighteen months except to the extent thatnew money is advanced within such eighteen-month period by a renewal oradditional loan. Such loan fee may only be reimposed by the lender upon aborrower in connection with the refinancing of a loan made pursuant to thissubsection.
E. The rates, charges and other provisions permitted or required by thissection or by § 6.1-330.72 shall apply to all loans secured by a subordinatemortgage, including without limitation single maturity, amortizing and loanssecured by a credit line deed of trust as permitted by § 55-58.2.
F. Except for the loan fee permitted in this section, no discount, initialinterest, points or charges by any other name may be collected, charged oradded to a loan secured by a subordinate mortgage or deed of trust upon suchresidential real estate.
§ 6.1-330.71. (Repealed effective October 1, 2010) Charges on subordinatemortgage loans by certain lenders.
A. 1. Any person, other than lenders enumerated in § 6.1-330.73, may chargeadd-on interest that results in an annual yield of not more than eighteenpercent upon loans secured in whole or in part by a subordinate mortgage ordeed of trust on residential real estate improved by the construction thereonof housing consisting of one to four family dwelling units. For the purposesof this chapter, a subordinate mortgage or deed of trust is one subject to aprior mortgage or deed of trust in existence at the time of the making of theloan secured by such subordinate mortgage or deed of trust. An add-oninterest loan may be made only under this subsection and shall not exceed aperiod of five years and one month.
2. The lender may also impose a loan fee not exceeding two percent of theprincipal amount of the loan provided that such loan fee shall not be imposedmore often than once each eighteen months except to the extent that new moneyis advanced within such eighteen-month period by a renewal or additionalloan. New money shall be money advanced in excess of the outstandingprincipal balance at the time such new advance is made. These provisionsshall apply whether such loan fee is payable directly to the lender or to athird party in connection with such loan.
B. No charge, other than actual costs documented to the applicant andexpended for a credit report and an appraisal of the real estate conducted inconnection with the loan application, may be made if the loan is not made.Such charge shall not exceed one percent of the amount of the loan appliedfor; but in no event shall such charge exceed fifty dollars or one-half ofsuch costs whichever is less. Such charge may be made only if the lendercommits to make the loan. Such commitment shall be in writing and signed bythe lender or a person the lender has authorized to execute such documents.
C. The provisions of this section shall not apply to any loan by any lenderenumerated in § 6.1-330.73.
D. 1. Any loan secured by a subordinate mortgage or deed of trust on suchresidential real estate where the interest is charged at an annual interestrate on the unpaid balance thereof may be lawfully enforced at the annualinterest rate stated in the contract of indebtedness on the principal amountof the loan. Such annual interest rate may vary in accordance with anexterior standard.
2. In addition to the annual interest rate permitted by subdivision 1 of thissubsection, the lender may charge the borrower a loan fee not exceeding fivepercent of the principal amount of the loan. The lender may also charge theborrower with the actual costs of the loan as permitted by § 6.1-330.72.
3. The loan fee permitted by subdivision 2 of this subsection shall not beimposed more often than once each eighteen months except to the extent thatnew money is advanced within such eighteen-month period by a renewal oradditional loan. Such loan fee may only be reimposed by the lender upon aborrower in connection with the refinancing of a loan made pursuant to thissubsection.
E. The rates, charges and other provisions permitted or required by thissection or by § 6.1-330.72 shall apply to all loans secured by a subordinatemortgage, including without limitation single maturity, amortizing and loanssecured by a credit line deed of trust as permitted by § 55-58.2.
F. Except for the loan fee permitted in this section, no discount, initialinterest, points or charges by any other name may be collected, charged oradded to a loan secured by a subordinate mortgage or deed of trust upon suchresidential real estate.
