Recent Changes to Mortgage Laws in Kansas and Idaho
by: Nicole Legere, Esq.
Kansas Revisions to Mortgage Interest Rates
Kansas Senate Bill 52 was recently passed to increase the maximum annual interest rate, from its previous limitation of no more than 1.5 percentage points, to no more than 3.5 percentage points above the specified monthly floating cap set by the Federal Home Loan Mortgaging Corporation. This interest rate limitation applies to all first mortgage loans and contracts for deed to real estate, unless the parties agree in writing to make the transaction subject to the uniform consumer credit code.
This bill continues to specifically exclude “a note secured by a real estate mortgage or a contract for deed to real estate where the note or contract for deed permits adjustment of the interest rate, the term of the loan or the amortization schedule.”
This bill was introduced in response to falling interest rates, and a concern around selling loans in the secondary market, and was supported by the Kansas Bankers Association.
This increase shall be effective immediately upon publication. The amendments can be read in full on AllRegs at: http://www.allregs.com/ao/main.aspx?did2=79ddc13b691942c3b93511b11789c3a3
Idaho Amends Laws Relating to Trustee Deeds
Idaho House Bill 76 was passed to make corrections regarding trustee sales and the recordation of trustee deeds. The bill states that a trustee deed, when recorded, shall be prima facie evidence in any court of the truth of the recitals and affidavits. Furthermore, the recitals and affidavits contained in the trustee deed will be considered conclusive in favor of a purchaser in good faith, and therefore cannot be rebutted.
When a trustee sale is held to be invalid, due to provisions of the bankruptcy code or other court order, a recordation of a notice of rescission shall be recorded. Once recorded, the title will be restored to the condition of record title described in the trustee’s deed, and the priority of all lien holders shall return to the status quo as it was prior to the trustee’s sale.
The notice of rescission may only be recorded by the trustee or beneficiary (or a successor in interest) who initially caused the trustee’s deed to be recorded.
These changes shall be effective on July 1, 2013. The amendments can be read in full on AllRegs at: http://www.allregs.com/ao/main.aspx?did2=9f6b81993b44482ba7c3407cb716da87
About the Author:
Nicole Legere, Esq. is Senior Counsel and Assistant Vice President at Bankers Advisory, Inc. A graduate of the University of Massachusetts at Amherst, she earned her J.D. at Roger Williams School of Law. She is admitted to the bar in Massachusetts and New York. Nicole can be reached at Nicole@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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