§ 2216. Mortgage lending; specific requirements; exceptions
Every licensee engaging in the making of loans secured by a lien against real estate
located in this State, whether conducting its affairs as an agent or principal and
whether operating from facilities within the State or by mail, telephone, or by electronic
means, shall comply with the general provisions of this chapter unless exempted herein.
A licensee making such loans through a third person shall only make loans through
a person licensed as a mortgage broker and as a mortgage loan originator under this
chapter, unless such third person is exempt from such licensing provisions. Any lender
who makes such loans through a third person required to be licensed and not so licensed,
in addition to being subject to all applicable penalties under Vermont law, shall
be responsible for the acts or omissions of the third person as a principal is responsible
for the acts and omissions of its agent. Every licensee making loans secured by a
lien against real estate shall comply with sections 10403 and 10404, and subchapter
2 of chapter 200 of this title, and shall also be subject to the following specific
limitations:
(1) For loans secured by a first lien, the term shall not exceed 480 months, and the licensees
may not exceed the interest rate permitted by 9 V.S.A. § 41a(b)(8). All such lien documents shall include a power of sale pursuant to 12 V.S.A § 4531a et seq. The limitations on permitted charges contained in sections 2231 and 2233 of this title and 9 V.S.A. §§ 42, 44, and 46 shall not apply to any loan within the scope of 12 U.S.C. § 1735f-7a. Permitted charges shall be as specified in 9 V.S.A. § 42, 44, and 46 for any loan secured by a first lien on real estate that is not included within the
scope of 12 U.S.C. § 1735f-7a, instead of sections 2231 and 2233 of this title.
(2) For loans secured by a subordinate lien, the term shall not exceed 360 months, and
the licensees may not exceed the interest rate permitted by 9 V.S.A. chapter 4. All such lien documents shall include a power of sale pursuant to 12 V.S.A. § 4531a et seq. Permitted charges for loans secured by a subordinate lien shall be as specified
in 9 V.S.A. §§ 42, 44, and 46, instead of sections 2231 and 2233 of this title.
(3) No licensee shall take a lien upon real estate as security for any loan made under
this chapter, except such lien as is created by law upon the recording of a judgment
or such lien as secures a loan in principal amount in excess of $3,000.00 at the time
of making.
(4) Interest shall be computed by the actuarial method in accordance with 9 V.S.A. 41a(d).
(5) Any loan secured by a lien on real estate, except a commercial loan, which does not
contain a fixed rate or substantially equal payments for full amortization within
the repayment period shall conform to federal regulations on alternative mortgages
where applicable by reason of federal law or action of the Commissioner.
(6) This section shall not apply to commercial loans. (Added 1983, No. 35, § 1; amended 1989, No. 244 (Adj. Sess.), § 1; 1995, No. 162 (Adj. Sess.), § 17, eff. Jan. 1, 1997; 1997, No. 23, § 12, eff. Jan. 1, 1997; 1997, No. 98 (Adj. Sess.), § 3, eff. April 16, 1998; 1999, No. 153 (Adj. Sess.), § 15, eff. Jan. 1, 2001; 2009, No. 29, § 1.)