{"data":{"id":"us-ok/okla.-stat.-tit.-14a-14a-3-410","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 14A, § 14A-3-410","heading":"Subsection 10 mortgages – Limitations and restrictions","body":"- Preemption.\n\n(1) Limitation on terms on subsection 10 mortgages. A\n\nsubsection 10 mortgage referred to in subsection (10) of Section 1-\n\n301 of Title 14A of the Oklahoma Statutes shall not contain a demand\n\nfeature that permits the creditor to terminate the loan in advance\n\nof the original maturity date and to demand repayment of the entire\n\noutstanding balance, except in the following circumstances:\n\n(a) there is fraud or material misrepresentation by the\n\nconsumer in connection with the loan;\n\n(b) the consumer fails to meet the repayment terms of the\n\nagreement for any outstanding balance; or\n\n(c) there is any action or inaction by the consumer that\n\nadversely affects the creditor's security for the loan\n\nor, any right of the creditor in such security;\n\n(2) Restriction on activities. In connection with a subsection\n\n10 mortgage referred to in subsection (10) of Section 1-301 of Title\n\n14A of the Oklahoma Statutes:\n\n(a) a creditor shall not replace or consolidate a zero\n\ninterest rate or other low-rate loan made by a\n\ngovernmental or nonprofit creditor with a subsection\n\n10 mortgage within the first ten (10) years of the\n\nzero interest or other low-rate loan unless the\n\ncurrent holder of the loan consents in writing to the\n\nrefinancing. For purposes of this paragraph a “low-\n\nrate loan” is a loan that carries a current interest\n\nrate two (2) percentage points or more below the\n\ncurrent yield on United States Department of the\n\nTreasury securities with a comparable maturity;\n\n(b) no creditor shall recommend or encourage default on an\n\nexisting loan or other debt by an obligor before or in\n\nconnection with the closing or planned closing of a\n\nsubsection 10 mortgage that refinances all or any\n\nportion of such existing loan or debt;\n\n(c) a creditor extending mortgage credit subject to\n\nsubsection (10) of Section 1-301 of Title 14A of the\n\nOklahoma Statutes may not engage in a pattern or\n\npractice of extending credit subject to a consumer\n\nbased on the consumer's collateral without regard to\n\nthe consumer's repayment ability, including the\n\nconsumer's current and expected income, current\n\nobligations, and employment. There is a presumption\n\nthat a creditor has violated this subsection if the\n\ncreditor engages in a pattern or practice of making\n\nsubsection 10 mortgages without verifying and\n\ndocumenting consumers' repayment ability. A consumer\n\nshall be presumed to be able to make the scheduled\n\npayments to repay the obligation if, at the time the\n\nloan is consummated, the total monthly debts of the\n\nconsumer, including amounts owed under the loan, do\n\nnot exceed fifty-five percent (55%) of the monthly\n\ngross income of the consumer as verified by the credit\n\napplication, the financial statement of the consumer,\n\na credit report, financial information provided to the\n\ncreditor by or on behalf of the consumer, or any other\n\nreasonable means; provided, no presumption of\n\ninability to make the scheduled payments to repay the\n\nobligation shall arise solely from the fact that, at\n\nthe time the loan is consummated, the consumer's total\n\nmonthly debts, including amounts owed under the loan,\n\nexceed fifty-five percent (55%) of the monthly gross\n\nincome of the consumer;\ncreditor by or on behalf of the consumer, or any other\n\nreasonable means; provided, no presumption of\n\ninability to make the scheduled payments to repay the\n\nobligation shall arise solely from the fact that, at\n\nthe time the loan is consummated, the consumer's total\n\nmonthly debts, including amounts owed under the loan,\n\nexceed fifty-five percent (55%) of the monthly gross\n\nincome of the consumer;\n\n(d) within one (1) year of having extended credit subject\n\nto subsection (10) of Section 1-301 of Title 14A of\n\nthe Oklahoma Statutes, a creditor may not refinance\n\nany loan subject to subsection (10) of Section 1-301\n\nof Title 14A of the Oklahoma Statutes to the same\n\nborrower into another loan subject to subsection (10)\n\nof Section 1-301 of Title 14A of the Oklahoma\n\nStatutes, unless the refinancing is in the borrower’s\n\ninterest. An assignee holding or servicing an\n\nextension of mortgage credit subject to subsection\n\n(10) of Section 1-301 of Title 14A of the Oklahoma\n\nStatutes shall not, for the remainder of the one-year\n\nperiod following the date of origination of the\n\ncredit, refinance any loan subject to subsection (10)\n\nof Section 1-301 of Title 14A of the Oklahoma Statutes\n\nto the same borrower into another loan subject to\n\nsubsection (10) of Section 1-301 of Title 14A of the\n\nOklahoma Statutes, unless the refinancing is in the\n\nborrower’s interest. A creditor or assignee is\n\nprohibited from engaging in acts or practices to evade\n\nthis provision, including a pattern or practice of\n\narranging for the refinancing of its own loans by\n\naffiliated or unaffiliated creditors, or modifying a\n\nloan agreement, whether or not the existing loan is\n\nsatisfied and replaced by the new loan, and charging a\n\nfee;\n\n(e) in connection with credit secured by the consumer’s\n\ndwelling that does not meet the definition of open-end\n\ncredit defined at 12 C.F.R. Section 226.2(a)(20), a\n\ncreditor shall not structure a home-secured loan as an\n\nopen-end plan to evade the requirements of subsection\n\n(10) of Section 1-301 of Title 14A of the Oklahoma\n\nStatutes;\n\n(f) a subsection 10 mortgage referred to in subsection\n\n(10) of Section 1-301 of Title 14A of the Oklahoma\n\nStatutes shall not contain a mandatory arbitration\n\nprovision that:\n\n(i) does not comply with rules set forth by a\n\nnationally recognized arbitration organization\n\nsuch as the American Arbitration Association,\n\n(ii) does not require the arbitration proceeding to be\n\nconducted:\n\n(aa) within the federal judicial district in\n\nwhich the subject property is located,\n\n(bb) in the city nearest the obligor's residence\n\nwhere a federal district court is located,\n\nor\n\n(cc) at such other location as may be mutually\n\nagreed upon by the parties,\n\n(iii) does not require the creditor to contribute at\n\nleast fifty percent (50%) of the amount of any\n\nfiling fee, and\n\n(iv) does not require the creditor to pay standard\n\ndaily arbitration fees, both its own and those of\n\nthe obligor, for at least the first day of\n\narbitration;\nre a federal district court is located,\n\nor\n\n(cc) at such other location as may be mutually\n\nagreed upon by the parties,\n\n(iii) does not require the creditor to contribute at\n\nleast fifty percent (50%) of the amount of any\n\nfiling fee, and\n\n(iv) does not require the creditor to pay standard\n\ndaily arbitration fees, both its own and those of\n\nthe obligor, for at least the first day of\n\narbitration;\n\n(g) a creditor or its servicer shall report at least\n\nquarterly both the favorable and unfavorable payment\n\nhistory information of the obligor on payments due to\n\nthe creditor on a subsection 10 mortgage to a\n\nnationally recognized consumer credit reporting\n\nagency. This subsection shall not prevent a creditor\n\nor its servicer from agreeing with the obligor not to\n\nreport payment history information in the event of a\n\nresolved or unresolved dispute with the obligor and\n\nshall not apply to subsection 10 mortgages held or\n\nserviced by a creditor for less than ninety (90) days.\n\n(3) Preemption. The laws of this state relating to the\n\nbrokering, originating, making, servicing and collecting of mortgage\n\nloans subject to Title 14A of the Oklahoma Statutes prescribe rules\n\nof conduct on citizens generally, comprise a comprehensive\n\nregulatory framework intended to operate uniformly throughout the\n\nstate under the same circumstances and conditions and constitute\n\ngeneral laws of this state. Silence in the statutes of this state\n\nwith respect to any act or practice in the brokering, originating,\n\nmaking, servicing or collecting of mortgage loans subject to Title\n\n14A of the Oklahoma Statutes shall not be interpreted to mean that\n\nthe state has not completely occupied the field or has only set\n\nminimum standards in its regulation of brokering, originating,\n\nmaking, servicing or collecting of mortgage loans subject to Title\n\n14A of the Oklahoma Statutes. It is the intent of the Legislature\n\nto entirely preempt political subdivisions from the regulation and\n\nlicensing of persons engaged in the brokering, originating, making,\n\nservicing or collecting of mortgage loans subject to Title 14A of\n\nthe Oklahoma Statutes in this state. No political subdivision shall\n\nenact any ordinance, resolution, local regulation, rule or law that\n\nregulates, directly or indirectly, the brokering, originating,\n\nmaking, servicing or collecting of mortgage loans subject to Title\n\n14A of the Oklahoma Statutes, the terms of mortgage loans subject to\n\nTitle 14A of the Oklahoma Statutes or that makes the eligibility of\n\nany person or entity to do business with the political subdivision\n\ndependent on the terms of mortgage loans subject to Title 14A of the\n\nOklahoma Statutes originated or serviced by such person or entity or\n\nthat imposes any reporting requirements or other obligations on a\n\nperson, or its subsidiaries or affiliates engaged in the brokering,\n\noriginating, making, servicing or collecting of mortgage loans\n\nsubject to Title 14A of the Oklahoma Statutes in this state. For\n\npurposes of this section, \"political subdivision\" means any county,\n\ncity, town, school district, or other local governmental or public\n\nentity, located within this state.\n\n(4) Nothing in this section shall be construed to invalidate or\n\nprohibit any ordinance, resolution, regulation, rule or law by a\n\npolitical subdivision to establish and administer voluntary\n\nneighborhood reinvestment programs in furtherance of the goals and\n\npurposes of the \"Community Reinvestment Act of 1977\", 91 Stat. 1147,\n\n12 U.S.C.A. 2901, as amended.\n\n(5) Nothing in this section shall be construed to invalidate\n\nany ordinance, resolution, local regulation, rule or law by a\n\npolitical subdivision that is required to meet the criteria for\n\nadequacy of law established by the United States Department of\n\nHousing and Urban Development in order to obtain certification as a\n\nfair housing assistance program.","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":"4e703295112e2c6a10992b6421e8a219d4c5c950bedf31863b665b727dfe149c","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-14a-14a-3-409","next":"us-ok/okla.-stat.-tit.-14a-14a-3-411"},"notice":"GroundRules: Original legal text. Not legal advice."}