Posted on: 11th Sep, 2010 05:21 pm
Is it legal for a BANK to make installment loans to consumers secured by SFR rather than making a traditional mortgage loan secured by the SFR?
If the Banks make installment loans secured by SFR, don't they get around the interest rate restrictions which apply on traditional mortgage loans?
If the Banks make installment loans secured by SFR, don't they get around the interest rate restrictions which apply on traditional mortgage loans?
Hi dge,
The rules and guidelines for providing the installment loans and traditional mortgage loans are different. The interest rates would be different for paying off such loans. If the bank has informed the borrowers about installment loans, then they can go for it. It won't be considered as illegal.
The rules and guidelines for providing the installment loans and traditional mortgage loans are different. The interest rates would be different for paying off such loans. If the bank has informed the borrowers about installment loans, then they can go for it. It won't be considered as illegal.