(a)  An aggrieved borrower or borrowers may bring a civil action for injunctive relief or damages in a court of competent jurisdiction for any violation of this chapter.

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Terms Used In Rhode Island General Laws 34-25.2-8

  • Borrower: means any person obligated to repay the loan, including a co-borrower, co-signor or guarantor. See Rhode Island General Laws 34-25.2-4
  • Brokering: means to act as a loan broker as defined in Rhode Island general laws § 19-14-1. See Rhode Island General Laws 34-25.2-4
  • Contract: A legal written agreement that becomes binding when signed.
  • Creditor: means any person who regularly makes available a home loan and shall include a loan broker. See Rhode Island General Laws 34-25.2-4
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Home loan: means a loan, including an open-end credit plan, other than a reverse mortgage transaction, where the loan is secured by:

    (1)  A mortgage or deed of trust on real estate in this state upon which there is located or there is to be located a structure or structures designed principally for occupancy of from one to four (4) families which is or will be occupied by a borrower as the borrower's principal dwelling; or

    (2)  A security interest on a manufactured home which is or will be occupied by a borrower as the borrower's principal dwelling. See Rhode Island General Laws 34-25.2-4

  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
  • Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.

(b)  In addition, the court shall, as the court may consider appropriate:

(1)  Issue an order or injunction rescinding a home mortgage loan contract which violates this chapter, or barring the lender from collecting under any home mortgage loan which violates this chapter;

(2)  Issue an order or injunction barring any judicial or nonjudicial foreclosure or other lender action under the mortgage or deed of trust securing any home mortgage loan which violates this chapter;

(3)  Issue an order or injunction reforming the terms of the home mortgage loan to conform to this chapter;

(4)  Issue an order or injunction enjoining a lender from engaging in any prohibited conduct; or

(5)  Impose such other relief, including injunctive relief, as the court may consider just and equitable.

(c)  Originating or brokering a home loan that violates a provision of this section shall constitute a violation of this chapter.

(d)  A creditor in a home loan who, when acting in good faith, fails to comply with the provisions of this act, will not be deemed to have violated this section if the creditor establishes that either:

(1)  Within thirty (30) days of the loan closing and prior to the institution of any action under this chapter, the lender notifies the borrower of the compliance failure and makes appropriate restitution and whatever adjustments are necessary are made to the loan, at the choice of the borrower, to either:

(i)  make the high-cost home mortgage loan satisfy the requirements of this chapter; or

(ii)  change the terms of the loan in a manner beneficial to the borrower so that the loan will no longer be considered a high-cost home mortgage loan; or

(2)  The compliance failure was not intentional and resulted from a bona fide error notwithstanding the maintenance procedures reasonably adapted to avoid the errors, and within sixty (60) days after the discovery of the compliance failure and before the institution of any action under this chapter or the receipt of written notice of the compliance failure, the borrower is notified of the compliance failure, appropriate restitution is made and whatever adjustments are necessary are made to the loan, at the choice of the borrower, to either:

(i)  make the high-cost home mortgage loan satisfy the requirements of this chapter; or

(ii)  change the terms of the loan in a manner beneficial to the borrower so that the loan will no longer be considered a high-cost home mortgage loan.

Examples of a bona fide error may include clerical errors, errors in calculation, computer malfunction and programming, and printing errors. An error in legal judgment with respect to a person‘s obligation under this chapter shall not be considered a bona fide error.

(e)  Notwithstanding any provision to the contrary contained in this chapter regarding costs and attorneys’ fees, in any action instituted by a borrower who alleges that the defendant violated subsection 34-25.2-5(b), the borrower shall not be entitled to costs and attorneys’ fees if the presiding judge, in the judge’s discretion, finds that, before the institution of the action by the borrower, the lender made a reasonable offer to cure and that offer was rejected by the borrower.

History of Section.
P.L. 2006, ch. 569, § 1; P.L. 2006, ch. 573, § 1.