(a) A mandatory arbitration clause in a note, lien, instrument, or ancillary lien instrument or obligation that evidences or secures a covered loan that is oppressive, unfair, unconscionable, or in substantially in derogation of the rights of borrowers shall be void.
(b) Arbitration clauses that comply with the standards adopted by the Mayor pursuant to regulation shall be presumed not to violate this section; provided, the Mayor’s standards be in accordance with the procedures of a nationally recognized arbitration forum such as the American Arbitration Association.
(May 7, 2002, D.C. Law 14-132, § 218, 49 DCR 2551.)
For temporary (90 day) addition of section, see § 218 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