Spring 2023 States In Brief


California Senate Bill 633 amended the Civil Code related to providing notice to cosigners of consumer credit contracts. Specifically, a creditor must provide the notice in English as well as Spanish, Chinese, Tagalog, Vietnamese, and Korean. Pursuant to the amendments, the Department of Financial Protection and Innovation made available on its website translations of the notice. The amendments took effect on January 1, 2023.

New York

The New York Department of Financial Services released an Industry Letter, New York Subprime Law Requirement and Discontinued Publication of the Primary Mortgage Market Survey Rate for 5/1 Adjustable Rate Mortgage Loans, which provides guidance upon Freddie Mac’s discontinuation of publishing its weekly Primary Mortgage Market Survey commitment rate for the 5/1 ARM. This update is retroactive to November 17, 2022.


The Ohio Division of Financial Institutions released the prepayment penalty adjustment
for 2023. The dollar amount to which the prepayment penalty restriction applies is $107,633
for 2023. Therefore, effective January 1, 2023, a prepayment penalty is prohibited for a prepayment or refinancing of a residential mortgage loan of less than $107,633.

Ohio’s Governor signed House Bill 364, which subordinates property assessed clean energy (“PACE”) loans to first mortgage liens recorded after the PACE lien. House Bill 364 is
effective April 4, 2023.


The Finance Commission of Texas adopted amendments to its regulations on plain language contracts, applicable to regulated lenders. These amendments were effective January 5, 2023.


The Vermont Department of Financial Regulation previously issued an Order temporarily suspending the disclosure requirement for certain “high-rate” mortgage loans in Vermont. This Order was set to expire on December 31, 2022. On December 12, 2022, the Commissioner entered an Order Extending Suspension of the “high-rate” disclosure through June 30, 2023.

The Vermont Commissioner of Taxes released the “declared rate” for 2023. The rate change was effective January 1, 2023.


Washington adopted regulations to implement Senate Bill 5077 that permits loan originators to work from home. The amendments to the regulations were effective January 1, 2023.

Posted in Newsletters, States In Brief


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