A lender shall not make a covered loan that provides for a scheduled payment that is more than twice as large as the average of earlier scheduled monthly payments unless the balloon payment becomes due and payable not less than 7 years after the date of the loan closing. This section shall not apply if the payment schedule is adjusted to account for the seasonal or irregular income of the borrower or if the loan is a bridge loan connected with or related to the acquisition or construction of a dwelling intended to become the borrower’s principal dwelling.
(May 7, 2002, D.C. Law 14-132, § 213, 49 DCR 2551.)
For temporary (90 day) addition of section, see § 213 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