Spring 2022 States In Brief


The Governor of California signed into law Assembly Bill 948, the Fair Appraisal Act (“Act”). While most provisions apply to appraisers licensed under the Real Estate Appraisers’ Licensing and Certification Law, the Act also amends the Civil Code to require a disclosure related to fair appraisals. The disclosure must be delivered beginning July 1, 2022.

The California Department of Financial Protection and Innovation issued an updated Fair Lending Notice.
Under California’s Holden Act, financial institutions must provide a Fair Lending Notice to all applicants at the time of application.


The Montana Department of Administration adopted amendments to the regulations that implement the Montana Mortgage Act. The amendments were effective February 12, 2022.


The Ohio Division of Financial Institutions released the prepayment penalty adjustment for 2022. Under Ohio law, a prepayment penalty may not be charged for the prepayment or refinancing of a residential mortgage obligation of less than $75,000 (adjusted annually) that is made or arranged by a mortgage broker, loan officer, or non-bank mortgage lender and is secured by a first lien. The dollar amount to which the prepayment penalty restriction applies is $98,619 for 2022. Therefore, effective January 1, 2022, a prepayment penalty is prohibited for a prepayment or refinancing of a residential mortgage loan of less than $98,619.


On February 3, 2022, the Governor of Pennsylvania signed House Bill 1588, amending the Mortgage Licensing Act. Most notably, the amendments allow a mortgage lender licensee to conduct business from a remote location effective immediately.


The Vermont Commissioner of Taxes released the “declared rate” for 2022. While Vermont does not have state high-cost loan limitations, a disclosure is required in connection with a first mortgage loan in which the borrower is expected to be charged in excess of four points or an interest rate in excess of three percent over the rate established by 32 V.S.A. § 3108 (“declared rate”). The declared rate for 2022 is 3.25%. Therefore, any first mortgage loan with an interest rate greater than 6.25% would trigger this disclosure. The rate change was effective January 1, 2022.

Posted in Newsletters, States In Brief


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