{"data":{"id":"us-ok/okla.-stat.-tit.-14a-14a-3-309.4","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 14A, § 14A-3-309.4","heading":"Additional disclosures for subsection 10 mortgages","body":"(1) In addition to other disclosures required under this title,\n\nfor each subsection 10 mortgage referred to in subsection (10) of\n\nSection 1-301 of this title, the creditor shall provide the\n\nfollowing disclosures in conspicuous type size:\n\n(a) \"You are not required to complete this agreement\n\nmerely because you have received these disclosures or\n\nhave signed a loan application\";\n\n(b) \"If you obtain this loan, the lender will have a\n\nmortgage on your home. You could lose your home, and\n\nany money you have put into it, if you do not meet\n\nyour obligations under the loan”;\n\n(c) in the case of a credit transaction with a fixed rate\n\nof interest, the annual percentage rate and the amount\n\nof the regular monthly payment;\n\n(d) in the case of any other credit transaction, the\n\nannual percentage rate of the loan, the amount of the\n\nregular monthly payment, the amount of any balloon\n\npayment, a statement that the interest rate and\n\nmonthly payment may increase, and the amount of the\n\nmaximum monthly payment, based on the maximum interest\n\nrate allowed pursuant to Section 1204 of the\n\nCompetitive Equality Banking Act of 1987. The regular\n\npayment disclosed under this paragraph shall be\n\ntreated as accurate if it is based on an amount\n\nborrowed that is deemed accurate and is disclosed\n\nunder subparagraph (e) of this section;\n\n(e) for a mortgage refinancing, the total amount the\n\nconsumer will borrow, as reflected by the face amount\n\nof the note; and where the amount borrowed includes\n\npremiums or other charges for optional credit\n\ninsurance or debt-cancellation coverage, that fact\n\nshall be stated, grouped together with the disclosure\n\nof the amount borrowed. The disclosure of the amount\n\nborrowed shall be treated as accurate if it is not\n\nmore than One Hundred Dollars ($100.00) above or below\n\nthe amount required to be disclosed; and\n\n(f) “mortgage loan rates, closing costs and fees vary\n\nbased on many factors. These include your credit\n\nhistory and financial circumstances, your employment\n\nhistory, the loan-to-value that is represented by your\n\nhome and the amount of the loan you have requested,\n\nand the type of property that will secure your loan.\n\nThe loan rate and fees could also vary based on which\n\ncreditor or broker you select. As a borrower, you\n\nshould shop around and compare loan rates and fees.\n\nYou should also consider talking to a qualified,\n\nindependent credit counselor or other experienced\n\nfinancial advisor regarding the rate, fees and\n\nprovisions of this mortgage loan before you proceed.\n\nA list of qualified, independent counselors is\n\navailable by calling the Oklahoma Department of\n\nConsumer Credit or the Oklahoma State Banking\n\nDepartment. Remember: property taxes and homeowner’s\n\ninsurance are your responsibility, and not all\n\ncreditors provide escrow services that enable them to\n\nmake those payments on your behalf. You should ask\n\nyour creditor about these services. Your payments on\n\nexisting debts contribute to your credit ratings. You\n\nshould not accept any advice to ignore your regular\n\npayments to your existing creditors.\"\n\n(2) (a) The disclosures required by this section shall be\n\ngiven not less than three (3) business days prior to\n\nconsummation of the transaction.\nmake those payments on your behalf. You should ask\n\nyour creditor about these services. Your payments on\n\nexisting debts contribute to your credit ratings. You\n\nshould not accept any advice to ignore your regular\n\npayments to your existing creditors.\"\n\n(2) (a) The disclosures required by this section shall be\n\ngiven not less than three (3) business days prior to\n\nconsummation of the transaction.\n\n(b) (i) After providing the disclosures required by this\n\nsection, a creditor may not change the terms of\n\nthe extension of credit if such changes make the\n\ndisclosures inaccurate, unless new disclosures\n\nare provided that meet the requirements of this\n\nsection.\n\n(ii) A creditor may provide new disclosures pursuant\n\nto subparagraph (i) of this paragraph by\n\ntelephone, if:\n\n(aa) the change is initiated by the consumer; and\n\n(bb) at the consummation of the transaction under\n\nwhich the credit is extended:\n\n(I) the creditor provides to the consumer\n\nthe new disclosures, in writing; and\n\n(II) the creditor and consumer certify in\n\nwriting that the new disclosures were\n\nprovided by telephone, by not later than\n\nthree (3) days prior to the date of\n\nconsummation of the transaction.\n\n(c) The Administrator may, if the Administrator finds that\n\nsuch action is necessary to permit homeowners to meet\n\nbona fide personal financial emergencies, prescribe\n\nregulations authorizing the modification or waiver of\n\nrights created under this subsection, to the extent and\n\nunder the circumstances set forth in the regulations.\n\n(3) (a) (i) A subsection 10 mortgage referred to in\n\nsubsection (10) of Section 1-301 of this title\n\nmay not contain terms under which a consumer must\n\npay a prepayment penalty for paying all or part\n\nof the principal before the date on which the\n\nprincipal is due.\n\n(ii) For purposes of this subsection, any method of\n\ncomputing a refund of unearned scheduled interest\n\nis a prepayment penalty if it is less favorable\n\nto the consumer than the actuarial method, as\n\nthat term is defined in Section 933(d) of the\n\nHousing and Community Development Act of 1992.\n\n(b) Notwithstanding the provisions of subparagraph (a) of\n\nthis paragraph, a subsection 10 mortgage referred to\n\nin subsection (10) of Section 1-301 of this title may\n\ncontain a prepayment penalty, including terms\n\ncalculating a refund by a method that is not\n\nprohibited under Section 933(d) of the Housing and\n\nCommunity Development Act of 1992 for the transaction\n\nin question if:\n\n(i) at the time the subsection 10 mortgage is\n\nconsummated:\n\n(aa) the consumer is not liable for an amount of\n\nmonthly indebtedness payments, including the\n\namount of credit extended or to be extended\n\nunder the transaction, that is greater than\n\nfifty percent (50%) of the monthly gross\n\nincome of the consumer; and\n\n(bb) the income and expenses of the consumer are\n\nverified by a financial statement signed by\n\nthe consumer, by a credit report, and in the\n\ncase of employment income, by payment\n\nrecords or by verification from the employer\n\nof the consumer, which verification may be\n\nin the form of a copy of a pay stub or other\n\npayment record supplied by the consumer;\n\n(ii) the penalty applies only to a prepayment made\n\nwith amounts obtained by the consumer by means\n\nother than a refinancing by the creditor under\n\nthe subsection 10 mortgage, or an affiliate of\n\nthat creditor;\n\n(iii) the penalty does not exceed in the aggregate more\n\nthan:\n\n(aa) two percent (2%) of the loan amount prepaid\n\nin the first twelve (12) months after the\n\nsubsection 10 mortgage is consummated, or\n\n(bb) one percent (1%) of the loan amount prepaid\n\nin the second twelve (12) months after the\n\nsubsection 10 mortgage is consummated;\n\n(iv) the penalty does not apply after the end of the\n\ntwo-year period beginning on the date on which\n\nthe subsection 10 mortgage is consummated; and\ns after the\n\nsubsection 10 mortgage is consummated, or\n\n(bb) one percent (1%) of the loan amount prepaid\n\nin the second twelve (12) months after the\n\nsubsection 10 mortgage is consummated;\n\n(iv) the penalty does not apply after the end of the\n\ntwo-year period beginning on the date on which\n\nthe subsection 10 mortgage is consummated; and\n\n(v) the penalty is not prohibited under other\n\napplicable law.\n\n(c) Notwithstanding the provisions of subparagraph (a) or\n\n(b) of this paragraph, a subsection 10 mortgage\n\nreferred to in subsection (10) of Section 1-301 of\n\nthis title consummated with funds advanced directly or\n\nindirectly from a Federal Home Loan Bank may contain a\n\nprepayment penalty.\n\n(4) A subsection 10 mortgage referred to in subsection (10) of\n\nSection 1-301 of this title may not provide for an interest rate\n\napplicable after default that is higher than the interest rate that\n\napplies before default. If the date of maturity of a subsection 10\n\nmortgage referred to in subsection (10) of Section 1-301 of this\n\ntitle is accelerated due to default and the consumer is entitled to\n\na rebate of interest, that rebate shall be computed by any method\n\nthat is not less favorable than the actuarial method, as that term\n\nis defined in Section 933(d) of the Housing and Community\n\nDevelopment Act of 1992.\n\n(5) A subsection 10 mortgage referred to in subsection (10) of\n\nSection 1-301 of this title having a term of less than five (5)\n\nyears may not include terms under which the aggregate amount of the\n\nregular periodic payments would not fully amortize the outstanding\n\nprincipal balance.\n\n(6) A subsection 10 mortgage referred to in subsection (10) of\n\nSection 1-301 of this title may not include terms under which the\n\noutstanding principal balance will increase at any time over the\n\ncourse of the loan because the regular periodic payments do not\n\ncover the full amount of interest due.\n\n(7) A subsection 10 mortgage referred to in subsection (10) of\n\nSection 1-301 of this title may not include terms under which more\n\nthan two periodic payments required under the loan are consolidated\n\nand paid in advance from the loan proceeds provided to the consumer.\n\n(8) A creditor shall not make a payment to a contractor under a\n\nhome improvement contract from amounts extended as credit under a\n\nsubsection 10 mortgage referred to in subsection (10) of Section 1-\n\n301 of this title, other than:\n\n(a) in the form of an instrument that is payable to the\n\nconsumer or jointly to the consumer and the\n\ncontractor; or\n\n(b) at the election of the consumer, by a third party\n\nescrow agent in accordance with terms established in a\n\nwritten agreement signed by the consumer, the\n\ncreditor, and the contractor before the date of\n\npayment.\n\n(9) Any subsection 10 mortgage that contains a provision\n\nprohibited by this section shall be deemed a failure to deliver the\n\nmaterial disclosures required under this title, for the purpose of\n\nSection 5-204 of this title.\n\n(10) For purposes of this section, the term \"affiliate\" has the\n\nsame meaning as in Section 2(k) of the Bank Holding Company Act of\n\n1956.\n\n(11) (a) The Administrator may, by regulation or order, exempt\n\nspecific subsection 10 mortgage products or categories\n\nof subsection 10 mortgages from any or all of the\n\nprohibitions specified in subsections (3) through (8)\n\nof this section, if the Administrator finds that the\n\nexemption:\n\n(i) is in the interest of the borrowing public; and\n\n(ii) will apply only to products that maintain and\n\nstrengthen home ownership and equity protection.\n\n(b) The Administrator, by regulation or order, shall\n\nprohibit acts or practices in connection with:\nfrom any or all of the\n\nprohibitions specified in subsections (3) through (8)\n\nof this section, if the Administrator finds that the\n\nexemption:\n\n(i) is in the interest of the borrowing public; and\n\n(ii) will apply only to products that maintain and\n\nstrengthen home ownership and equity protection.\n\n(b) The Administrator, by regulation or order, shall\n\nprohibit acts or practices in connection with:\n\n(i) subsection 10 mortgage loans that the Board of\n\nGovernors of the Federal Reserve System has found\n\nto be unfair, deceptive, or designed to evade the\n\nprovisions of this section; and\n\n(ii) refinancing of subsection 10 mortgage loans that\n\nthe Board of Governors of the Federal Reserve\n\nSystem has found to be associated with abusive\n\nlending practices, or that are otherwise not in\n\nthe interest of the borrower.","path":["OK Code","Title 14A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os14A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"7a0f8b4bcdc307715d5a2392b61f1b2d8f7eb8c4ef11196d78ba35f9ba54c641","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-14a-14a-3-309.3","next":"us-ok/okla.-stat.-tit.-14a-14a-3-309.5"},"notice":"GroundRules: Original legal text. Not legal advice."}