A lender shall not recommend or encourage the borrower to default on an existing loan or other debt prior to and in connection with the closing or planned closing of a covered loan that refinances all or any portion of the existing loan or other debt.
(May 7, 2002, D.C. Law 14-132, § 205, 49 DCR 2551.)
For temporary (90 day) addition of section, see § 205 of Home Loan Protection Emergency Act of 2002 (D.C. Act 14-295, March 1, 2002, 49 DCR 2534).
Structure District of Columbia Code
Title 26 - Banks and Other Financial Institutions
Chapter 11A - Home Loan Protection
Subchapter II - Prohibited Practices
§ 26–1152.02. Insufficient repayment ability
§ 26–1152.03. Restrictions on the financing of single-premium credit insurance
§ 26–1152.04. Restriction on financing origination/discount points and fees
§ 26–1152.05. No encouragement of default
§ 26–1152.06. Unfair steering or improper use of credit scores
§ 26–1152.07. Failing to report favorable payment record
§ 26–1152.08. Home improvement contracts
§ 26–1152.09. No increase in interest rate upon default
§ 26–1152.10. Charges in bad faith
§ 26–1152.11. Failure to timely send disclosure notice
§ 26–1152.12. Prepayment premium, fee or charge
§ 26–1152.13. Limitations on balloon payments
§ 26–1152.14. No call provision
§ 26–1152.15. No negative amortization
§ 26–1152.16. No advance payments
§ 26–1152.17. No advance waivers
§ 26–1152.18. No oppressive mandatory arbitration clause
§ 26–1152.19. Homeownership counseling
§ 26–1152.21. Filing requirements