SENATE BILL 574

1 (II) THE PAST DUE PAYMENT IS PAST DUE FOR 15 DAYS OR MORE;

2 AND

3 (III) THE LENDER NOTIFIES THE BORROWER WITHIN 45 DAYS

4 FOLLOWING THE PAYMENT DUE DATE THAT A LATE PAYMENT CHARGE HAS BEEN

5 IMPOSED.

6 (2) A LATE PAYMENT FEE MAY NOT BE CHARGED MORE THAN ONCE FOR

7 A SINGLE PAST DUE PAYMENT.

8 (3) IF A LATE PAYMENT FEE IS DEDUCTED FROM A SUBSEQUENT

9 PAYMENT ON A LOAN, THE DEDUCTION FROM THE SUBSEQUENT PAYMENT MAY NOT

10 CAUSE A DEFAULT ON THAT SUBSEQUENT PAYMENT.

11 (4) IF A LATE PAYMENT FEE HAS BEEN CHARGED FOR A PAST DUE

12 PAYMENT, ANY SUBSEQUENT PAYMENT THAT WOULD HAVE BEEN TIMELY AND

13 SUFFICIENT BUT FOR THE PREVIOUS PAST DUE PAYMENT MAY NOT BE SUBJECT TO

14 A LATE PAYMENT FEE.

15 (5) A LATE PAYMENT FEE MAY NOT BE COLLECTED IF THE BORROWER

16 INFORMS THE LENDER THAT NONPAYMENT OF AN INSTALLMENT IS IN DISPUTE AND

17 PRESENTS PROOF OF PAYMENT WITHIN 45 DAYS OF RECEIPT OF NOTICE OF THE

18 IMPOSITION OF A LATE PAYMENT FEE.

19 (C) (1) IF A BORROWER REQUESTS A PAYOFF BALANCE FROM A LENDER,

20 THE LENDER SHALL PROVIDE THE PAYOFF BALANCE TO THE BORROWER WITHIN

21 SEVEN BUSINESS DAYS OF THE REQUEST.

22 (2) A LENDER MAY NOT CHARGE A FEE FOR:

23 (I) PROVIDING THE PAYOFF BALANCE FOR A HOME LOAN; OR

24 (II) PROVIDING A RELEASE ON PREPAYMENT OF THE LOAN.

25 (D) A LENDER MAY NOT MAKE A HIGH-COST HOME LOAN:

26 (1) IF THE HIGH-COST HOME LOAN PAYS OFF ALL OR PART OF AN

27 EXISTING HOME LOAN; AND

28 (2) THE BORROWER DOES NOT RECEIVE A REASONABLE AND TANGIBLE

29 NET BENEFIT FROM THE NEW HOME LOAN CONSIDERING ALL THE CIRCUMSTANCES,

30 INCLUDING THE TERMS OF THE HIGH-COST HOME LOAN, THE REFINANCED DEBT,

31 THE COST OF THE NEW HOME LOAN, AND THE BORROWER'S CIRCUMSTANCES.

32 (E) A LENDER MAY NOT RECOMMEND OR ENCOURAGE DEFAULT OF AN

33 EXISTING LOAN OR OTHER DEBT PRIOR TO OR IN CONNECTION WITH THE CLOSING

34 OR PLANNED CLOSING OF A HOME LOAN THAT REFINANCES ALL OR ANY PORTION OF

35 THE EXISTING LOAN OR DEBT.

10 12-1204.

11 A VIOLATION OF THIS SUBTITLE IS AN UNFAIR AND DECEPTIVE TRADE

12 PRACTICE WITHIN THE MEANING OF TITLE 13 OF THIS ARTICLE.

13 12-1205.

14 (A) A PERSON WHO HAS SUFFERED DAMAGES FOR A VIOLATION OF ANY

15 PROVISION OF THIS SUBTITLE MAY BRING A CIVIL ACTION AGAINST THE PERSON IN

16 A COURT OF COMPETENT JURISDICTION.

17 (B) THE COURT MAY AWARD:

18 (1) ACTUAL DAMAGES TO THE AGGRIEVED PARTY;

19 (2) STATUTORY DAMAGES EQUAL TO THE FINANCE CHARGES AGREED

20 TO IN THE HOME LOAN AGREEMENT PLUS 10% OF THE AMOUNT FINANCED;

21 (3) PUNITIVE DAMAGES FOR WILLFUL VIOLATION OF THIS SUBTITLE;

22 AND

23 (4) IF A JUDGMENT IS ENTERED IN FAVOR OF A COMPLAINING PARTY,

24 ATTORNEY'S FEES TO THE COMPLAINING PARTY.

25 12-1206.

26 (A) A LENDER THAT INTENTIONALLY MAKES A HOME LOAN IN VIOLATION OF

27 ANY PROVISION OF THIS SUBTITLE IS SUBJECT TO FORFEITURE OF ALL PRINCIPAL

28 AND INTEREST ON THE LOAN.

29 (B) LOAN TERMS WHICH VIOLATE THIS SUBTITLE ARE UNENFORCEABLE AND

30 A COURT OF COMPETENT JURISDICTION MAY ISSUE AN ORDER TO ALTER THE TERMS

31 OF THE LOAN AGREEMENT TO BRING THE LOAN IN COMPLIANCE WITH THIS

32 SUBTITLE.

33 (C) THE RIGHTS OF RESCISSION GRANTED UNDER 15 U.S.C. 1601, ET. SEQ., FOR

34 VIOLATIONS OF THAT LAW AND ALL OTHER REMEDIES PROVIDED IN THIS ARTICLE

35 SHALL BE AVAILABLE TO A BORROWER BY WAY OF RECOUPMENT AGAINST A PARTY