Terms Used In Rhode Island General Laws > Chapter 34-25.2 - Rhode Island Home Loan Protection Act

• Accelerate: means the advancing of a loan agreement's maturity date so that payment of the entire debt is due immediately. See Rhode Island General Laws 34-25.2-4
• Affiliate: means any company that controls, is controlled by, or is under common control with another company, as set forth in Rhode Island General Laws 34-25.2-4
• Amortization: Paying off a loan by regular installments.
• Annual percentage rate: means the annual percentage rate for the loan calculated according to the provisions of Rhode Island General Laws 34-25.2-4
• Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. ^{Source: FDIC}
• Appraisal: A determination of property value.
• Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. ^{Source: OCC}
• Bona fide discount points: means an amount knowingly paid by the borrower for the express purpose of reducing, and which in fact does result in a bona fide reduction of, the interest rate applicable to the home loan; provided the undiscounted interest rate for the home loan does not exceed the conventional mortgage rate by two (2) percentage points for a home loan secured by a first lien, or by three and one-half (3. See Rhode Island General Laws 34-25.2-4
• 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.
• Conventional mortgage rate: means the most recently published annual yield on conventional mortgages published by the board of governors of the Federal Reserve System, as published in statistical release H. See Rhode Island General Laws 34-25.2-4
• Conventional prepayment penalty: means any prepayment penalty or fee that may be collected or charged in a home loan, and that is authorized by law other than this chapter, provided the home loan: (1) does not have an annual percentage rate that exceeds the conventional mortgage rate by more than two (2) percentage points; and (2) does not permit any prepayment fees or penalties that exceed two percent (2%) of the amount prepaid. See Rhode Island General Laws 34-25.2-4
• Counterclaim: A claim that a defendant makes against a plaintiff.
• 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.
• Department: means the department of business regulation. See Rhode Island General Laws 34-25.2-4
• Director: means the director of the department of business regulation. See Rhode Island General Laws 34-25.2-4
• 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}
• Escrow: Money given to a third party to be held for payment until certain conditions are met.
• Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
• Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. ^{Source: OCC}
• Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. ^{Source: OCC}
• Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
  • You are late making a payment or commit some other default, triggering an increase to a penalty rate
  • The bank changes the terms of your account and you do not reject the change.
  • The rate expires (if the rate was fixed for only a certain period of time).
• 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}
• Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. ^{Source: OCC}
• High-cost home loan: means a home loan in which the terms of the loan meet or exceed one of more of the thresholds as defined in subsection (r) of this section. See Rhode Island General Laws 34-25.2-4
• 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.
• Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. ^{Source: OCC}
• 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.
• Lien: A claim against real or personal property in satisfaction of a debt.
• 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}
• National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. ^{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.
• Open-end credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or revolving credit.) ^{Source: OCC}
• person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
• Points and fees: means :

  (1)  All items included in the definition of finance charge in Rhode Island General Laws 34-25.2-4

• Predatory lending: means any act and practice which is found in violation of those acts and practices prohibited by Rhode Island General Laws 34-25.2-4
• real estate: may be construed to include lands, tenements, and hereditaments and rights thereto and interests therein. See Rhode Island General Laws 43-3-10
• Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
• Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
• Total loan amount: means the total amount the consumer will borrow, as reflected by the face amount of the note. See Rhode Island General Laws 34-25.2-4
• United States: include the several states and the territories of the United States. See Rhode Island General Laws 43-3-8