For the purposes of 209 CMR 40.00, the following definitions apply:
"Bank", any association or corporation chartered by the commonwealth under the provisions of G.L. c. 168, 170, 171, or 172 or any individuals, association, partnership or corporation incorporated or doing a banking business in the commonwealth, subject to the supervision of the commissioner.
"Bona fide loan discount points" means loan discount points paid for the purpose of reducing, and which in fact result in a bona fide reduction of, the interest rate or time-price differential applicable to the loan, provided the amount of the interest rate reduction purchased by the discount points is reasonably consistent with established industry norms and practices for secondary mortgage market transactions. For purposes of this section, it shall be presumed that a point is a bona fide loan discount point if it reduces the interest rate by a minimum of 35 basis points or 3/8 of a point provided all other terms of the loan remain the same.
"Commissioner", the commissioner of banks.
"Consumer" means a natural person who seeks or acquires goods, services, or money for personal, family, or household use other than for the purchase of real property.
"Consumer transaction" means a transaction between a financial institution and a consumer, in which the money, property or services are primarily for personal, family or household purposes.
"Cosigner" means (a) a natural person who assumes liability for the obligation of a consumer without receiving goods, services, or money in return for the obligation, or, in the case of an open-end credit obligation, without receiving the contractual right to obtain extensions of credit under the account.
(b) "Cosigner" includes any person whose signature is requested as a condition to granting credit to a consumer, or as a condition for forbearance on collection of a consumer's obligation that is in default. The term does not include a spouse whose signature is required on a credit obligation to perfect a security interest pursuant to state law.
(c) A person who meets the definition in this paragraph is a "cosigner," whether or not the person is designated as such on the credit obligation.
"Earnings" means compensation paid or payable to an individual or for the individual's account for personal services rendered or to be rendered by the individual, whether denominated as wages, salary, commission, bonus, or otherwise, including periodic payments pursuant to a pension, retirement, or disability program.
"Federal bank", a national banking association, savings and loan association or savings bank which exists by authority of the United States, the main office of which is located in the commonwealth.
"Federal branch", a branch in the commonwealth of any out-of-state federal bank.
"Federal credit union", a credit union organized under the provisions of the Federal Credit Union Act.
"Financial institution" means a bank, a federal bank, a Massachusetts branch, a federal branch, an out-of-state branch, or a federal credit union.
"High cost home loan" means (a) a consumer credit transaction that is secured by the consumer's principal dwelling, and in which either:
(1)(i)For a first mortgage, the annual percentage rate at consummation will exceed by more than 8 percentage points the yield on Treasury securities having comparable periods of maturity to the loan maturity as of the 15th day of the month immediately preceding the month in which the application for the extension of credit is received by the creditor;
(ii)For a junior mortgage, the annual percentage rate at consummation will exceed by more than 9 percentage points the yield on Treasury securities having comparable periods of maturity to the loan maturity as of the 15th day of the month immediately preceding the month in which the application for the extension of credit is received by the creditor;
(iii) When calculating the annual percentage rate for adjustable rate loans, the creditor shall use the interest rate that would be effective once the introductory rate has expired; or
(2)the total points and fees payable by the consumer at or before loan closing will exceed the greater of 5 percent of the total loan amount, or $400; the $400 figure shall be adjusted annually on January 1 by the annual percentage change in the Consumer Price Index that was reported on the preceding June 1; provided, however that bona fide loan discount points payable by the borrower in connection with the loan transaction may be excluded from the calculation of the total points and fees payable by the borrower for purposes of this paragraph.
(b)a high cost home loan does not include the following:
(1)a reverse-mortgage transaction subject to 209 CMR 32.33 or 12 CFR 226.33.
(2)an unsecured open-end credit plan subject to 209 CMR 32.00 or Subpart B of 12 CFR 226.00.
"Household goods" means clothing, furniture, appliances, linens, china, crockery, kitchenware, and personal effects of the consumer and the consumer's dependents. The term "household goods" does not include-
(1) works of art;
(2) electronic entertainment equipment (other than one television and one radio);
(3) items acquired as antiques; that is, items over one hundred years of age, including such items that have been repaired or renovated without changing their original form or character; and
(4) jewelry (other than wedding rings).
"Massachusetts bank", any bank, other than an association or corporation chartered pursuant to G.L. c. 171.
"Massachusetts branch", a branch in the commonwealth of any out-of-state bank.
"Obligation" means an agreement between a consumer and a creditor.
"Out-of-state bank", any association or corporation authorized to do a banking business the main office of which is located outside the commonwealth and which exists by authority of any state of the United States other than the commonwealth.
"Out-of-state branch", a branch of any Massachusetts bank located outside the commonwealth.
"Out-of-state federal bank", a national banking association, savings and loan association or savings bank which exists by authority of the United States the main office of which is located outside the commonwealth.
"Person" means an individual, corporation, or other business organization.
"Scheduled monthly payments" means minimum sums required to be paid with respect to all of the borrower's debts that are reported on a nationally recognized consumer credit bureau report and the monthly mortgage payment due under the high cost home loan (ignoring any reduction arising from a lower introductory rate) plus one twelfth of the annualized cost of real estate tax and insurance premium payments during the immediately preceding twelve months. Scheduled monthly payments shall not include any debts that are consolidated with or paid off by the high cost home loan.