Okla. Stat. tit. 14A, § 14A-3-309.4

(1) In addition to other disclosures required under this title,

for each subsection 10 mortgage referred to in subsection (10) of

Section 1-301 of this title, the creditor shall provide the

following disclosures in conspicuous type size:

(a) "You are not required to complete this agreement

merely because you have received these disclosures or

have signed a loan application";

(b) "If you obtain this loan, the lender will have a

mortgage on your home. You could lose your home, and

any money you have put into it, if you do not meet

your obligations under the loan”;

(c) in the case of a credit transaction with a fixed rate

of interest, the annual percentage rate and the amount

of the regular monthly payment;

(d) in the case of any other credit transaction, the

annual percentage rate of the loan, the amount of the

regular monthly payment, the amount of any balloon

payment, a statement that the interest rate and

monthly payment may increase, and the amount of the

maximum monthly payment, based on the maximum interest

rate allowed pursuant to Section 1204 of the

Competitive Equality Banking Act of 1987. The regular

payment disclosed under this paragraph shall be

treated as accurate if it is based on an amount

borrowed that is deemed accurate and is disclosed

under subparagraph (e) of this section;

(e) for a mortgage refinancing, the total amount the

consumer will borrow, as reflected by the face amount

of the note; and where the amount borrowed includes

premiums or other charges for optional credit

insurance or debt-cancellation coverage, that fact

shall be stated, grouped together with the disclosure

of the amount borrowed. The disclosure of the amount

borrowed shall be treated as accurate if it is not

more than One Hundred Dollars ($100.00) above or below

the amount required to be disclosed; and

(f) “mortgage loan rates, closing costs and fees vary

based on many factors. These include your credit

history and financial circumstances, your employment

history, the loan-to-value that is represented by your

home and the amount of the loan you have requested,

and the type of property that will secure your loan.

The loan rate and fees could also vary based on which

creditor or broker you select. As a borrower, you

should shop around and compare loan rates and fees.

You should also consider talking to a qualified,

Oklahoma Statutes - Title 14A. Consumer Credit Code Page 130

independent credit counselor or other experienced

financial advisor regarding the rate, fees and

provisions of this mortgage loan before you proceed.

A list of qualified, independent counselors is

available by calling the Oklahoma Department of

Consumer Credit or the Oklahoma State Banking

Department. Remember: property taxes and homeowner’s

insurance are your responsibility, and not all

creditors provide escrow services that enable them to

make those payments on your behalf. You should ask

your creditor about these services. Your payments on

existing debts contribute to your credit ratings. You

should not accept any advice to ignore your regular

payments to your existing creditors."

(2) (a) The disclosures required by this section shall be

given not less than three (3) business days prior to

consummation of the transaction.
make those payments on your behalf. You should ask

your creditor about these services. Your payments on

existing debts contribute to your credit ratings. You

should not accept any advice to ignore your regular

payments to your existing creditors."

(2) (a) The disclosures required by this section shall be

given not less than three (3) business days prior to

consummation of the transaction.

(b) (i) After providing the disclosures required by this

section, a creditor may not change the terms of

the extension of credit if such changes make the

disclosures inaccurate, unless new disclosures

are provided that meet the requirements of this

section.

(ii) A creditor may provide new disclosures pursuant

to subparagraph (i) of this paragraph by

telephone, if:

(aa) the change is initiated by the consumer; and

(bb) at the consummation of the transaction under

which the credit is extended:

(I) the creditor provides to the consumer

the new disclosures, in writing; and

(II) the creditor and consumer certify in

writing that the new disclosures were

provided by telephone, by not later than

three (3) days prior to the date of

consummation of the transaction.

(c) The Administrator may, if the Administrator finds that

such action is necessary to permit homeowners to meet

bona fide personal financial emergencies, prescribe

regulations authorizing the modification or waiver of

rights created under this subsection, to the extent and

under the circumstances set forth in the regulations.

(3) (a) (i) A subsection 10 mortgage referred to in

subsection (10) of Section 1-301 of this title

may not contain terms under which a consumer must

pay a prepayment penalty for paying all or part

Oklahoma Statutes - Title 14A. Consumer Credit Code Page 131

of the principal before the date on which the

principal is due.

(ii) For purposes of this subsection, any method of

computing a refund of unearned scheduled interest

is a prepayment penalty if it is less favorable

to the consumer than the actuarial method, as

that term is defined in Section 933(d) of the

Housing and Community Development Act of 1992.

(b) Notwithstanding the provisions of subparagraph (a) of

this paragraph, a subsection 10 mortgage referred to

in subsection (10) of Section 1-301 of this title may

contain a prepayment penalty, including terms

calculating a refund by a method that is not

prohibited under Section 933(d) of the Housing and

Community Development Act of 1992 for the transaction

in question if:

(i) at the time the subsection 10 mortgage is

consummated:

(aa) the consumer is not liable for an amount of

monthly indebtedness payments, including the

amount of credit extended or to be extended

under the transaction, that is greater than

fifty percent (50%) of the monthly gross

income of the consumer; and

(bb) the income and expenses of the consumer are

verified by a financial statement signed by

the consumer, by a credit report, and in the

case of employment income, by payment

records or by verification from the employer

of the consumer, which verification may be

in the form of a copy of a pay stub or other

payment record supplied by the consumer;

(ii) the penalty applies only to a prepayment made

with amounts obtained by the consumer by means

other than a refinancing by the creditor under

the subsection 10 mortgage, or an affiliate of

that creditor;

(iii) the penalty does not exceed in the aggregate more

than:

(aa) two percent (2%) of the loan amount prepaid

in the first twelve (12) months after the

subsection 10 mortgage is consummated, or

(bb) one percent (1%) of the loan amount prepaid

in the second twelve (12) months after the

subsection 10 mortgage is consummated;

Oklahoma Statutes - Title 14A. Consumer Credit Code Page 132

(iv) the penalty does not apply after the end of the

two-year period beginning on the date on which

the subsection 10 mortgage is consummated; and
s after the

subsection 10 mortgage is consummated, or

(bb) one percent (1%) of the loan amount prepaid

in the second twelve (12) months after the

subsection 10 mortgage is consummated;

Oklahoma Statutes - Title 14A. Consumer Credit Code Page 132

(iv) the penalty does not apply after the end of the

two-year period beginning on the date on which

the subsection 10 mortgage is consummated; and

(v) the penalty is not prohibited under other

applicable law.

(c) Notwithstanding the provisions of subparagraph (a) or

(b) of this paragraph, a subsection 10 mortgage

referred to in subsection (10) of Section 1-301 of

this title consummated with funds advanced directly or

indirectly from a Federal Home Loan Bank may contain a

prepayment penalty.

(4) A subsection 10 mortgage referred to in subsection (10) of

Section 1-301 of this title may not provide for an interest rate

applicable after default that is higher than the interest rate that

applies before default. If the date of maturity of a subsection 10

mortgage referred to in subsection (10) of Section 1-301 of this

title is accelerated due to default and the consumer is entitled to

a rebate of interest, that rebate shall be computed by any method

that is not less favorable than the actuarial method, as that term

is defined in Section 933(d) of the Housing and Community

Development Act of 1992.

(5) A subsection 10 mortgage referred to in subsection (10) of

Section 1-301 of this title having a term of less than five (5)

years may not include terms under which the aggregate amount of the

regular periodic payments would not fully amortize the outstanding

principal balance.

(6) A subsection 10 mortgage referred to in subsection (10) of

Section 1-301 of this title may not include terms under which the

outstanding principal balance will increase at any time over the

course of the loan because the regular periodic payments do not

cover the full amount of interest due.

(7) A subsection 10 mortgage referred to in subsection (10) of

Section 1-301 of this title may not include terms under which more

than two periodic payments required under the loan are consolidated

and paid in advance from the loan proceeds provided to the consumer.

(8) A creditor shall not make a payment to a contractor under a

home improvement contract from amounts extended as credit under a

subsection 10 mortgage referred to in subsection (10) of Section 1-

301 of this title, other than:

(a) in the form of an instrument that is payable to the

consumer or jointly to the consumer and the

contractor; or

(b) at the election of the consumer, by a third party

escrow agent in accordance with terms established in a

written agreement signed by the consumer, the

creditor, and the contractor before the date of

payment.

Oklahoma Statutes - Title 14A. Consumer Credit Code Page 133

(9) Any subsection 10 mortgage that contains a provision

prohibited by this section shall be deemed a failure to deliver the

material disclosures required under this title, for the purpose of

Section 5-204 of this title.

(10) For purposes of this section, the term "affiliate" has the

same meaning as in Section 2(k) of the Bank Holding Company Act of

1956.

(11) (a) The Administrator may, by regulation or order, exempt

specific subsection 10 mortgage products or categories

of subsection 10 mortgages from any or all of the

prohibitions specified in subsections (3) through (8)

of this section, if the Administrator finds that the

exemption:

(i) is in the interest of the borrowing public; and

(ii) will apply only to products that maintain and

strengthen home ownership and equity protection.

(b) The Administrator, by regulation or order, shall

prohibit acts or practices in connection with:
from any or all of the

prohibitions specified in subsections (3) through (8)

of this section, if the Administrator finds that the

exemption:

(i) is in the interest of the borrowing public; and

(ii) will apply only to products that maintain and

strengthen home ownership and equity protection.

(b) The Administrator, by regulation or order, shall

prohibit acts or practices in connection with:

(i) subsection 10 mortgage loans that the Board of

Governors of the Federal Reserve System has found

to be unfair, deceptive, or designed to evade the

provisions of this section; and

(ii) refinancing of subsection 10 mortgage loans that

the Board of Governors of the Federal Reserve

System has found to be associated with abusive

lending practices, or that are otherwise not in

the interest of the borrower.