Okla. Stat. tit. 14A, § 14A-3-410

- Preemption.

(1) Limitation on terms on subsection 10 mortgages. A

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

301 of Title 14A of the Oklahoma Statutes shall not contain a demand

Oklahoma Statutes - Title 14A. Consumer Credit Code Page 142

feature that permits the creditor to terminate the loan in advance

of the original maturity date and to demand repayment of the entire

outstanding balance, except in the following circumstances:

(a) there is fraud or material misrepresentation by the

consumer in connection with the loan;

(b) the consumer fails to meet the repayment terms of the

agreement for any outstanding balance; or

(c) there is any action or inaction by the consumer that

adversely affects the creditor's security for the loan

or, any right of the creditor in such security;

(2) Restriction on activities. In connection with a subsection

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

14A of the Oklahoma Statutes:

(a) a creditor shall not replace or consolidate a zero

interest rate or other low-rate loan made by a

governmental or nonprofit creditor with a subsection

10 mortgage within the first ten (10) years of the

zero interest or other low-rate loan unless the

current holder of the loan consents in writing to the

refinancing. For purposes of this paragraph a “low-

rate loan” is a loan that carries a current interest

rate two (2) percentage points or more below the

current yield on United States Department of the

Treasury securities with a comparable maturity;

(b) no creditor shall recommend or encourage default on an

existing loan or other debt by an obligor before or in

connection with the closing or planned closing of a

subsection 10 mortgage that refinances all or any

portion of such existing loan or debt;

(c) a creditor extending mortgage credit subject to

subsection (10) of Section 1-301 of Title 14A of the

Oklahoma Statutes may not engage in a pattern or

practice of extending credit subject to a consumer

based on the consumer's collateral without regard to

the consumer's repayment ability, including the

consumer's current and expected income, current

obligations, and employment. There is a presumption

that a creditor has violated this subsection if the

creditor engages in a pattern or practice of making

subsection 10 mortgages without verifying and

documenting consumers' repayment ability. A consumer

shall be presumed to be able to make the scheduled

payments to repay the obligation if, at the time the

loan is consummated, the total monthly debts of the

consumer, including amounts owed under the loan, do

not exceed fifty-five percent (55%) of the monthly

gross income of the consumer as verified by the credit

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application, the financial statement of the consumer,

a credit report, financial information provided to the

creditor by or on behalf of the consumer, or any other

reasonable means; provided, no presumption of

inability to make the scheduled payments to repay the

obligation shall arise solely from the fact that, at

the time the loan is consummated, the consumer's total

monthly debts, including amounts owed under the loan,

exceed fifty-five percent (55%) of the monthly gross

income of the consumer;
creditor by or on behalf of the consumer, or any other

reasonable means; provided, no presumption of

inability to make the scheduled payments to repay the

obligation shall arise solely from the fact that, at

the time the loan is consummated, the consumer's total

monthly debts, including amounts owed under the loan,

exceed fifty-five percent (55%) of the monthly gross

income of the consumer;

(d) within one (1) year of having extended credit subject

to subsection (10) of Section 1-301 of Title 14A of

the Oklahoma Statutes, a creditor may not refinance

any loan subject to subsection (10) of Section 1-301

of Title 14A of the Oklahoma Statutes to the same

borrower into another loan subject to subsection (10)

of Section 1-301 of Title 14A of the Oklahoma

Statutes, unless the refinancing is in the borrower’s

interest. An assignee holding or servicing an

extension of mortgage credit subject to subsection

(10) of Section 1-301 of Title 14A of the Oklahoma

Statutes shall not, for the remainder of the one-year

period following the date of origination of the

credit, refinance any loan subject to subsection (10)

of Section 1-301 of Title 14A of the Oklahoma Statutes

to the same borrower into another loan subject to

subsection (10) of Section 1-301 of Title 14A of the

Oklahoma Statutes, unless the refinancing is in the

borrower’s interest. A creditor or assignee is

prohibited from engaging in acts or practices to evade

this provision, including a pattern or practice of

arranging for the refinancing of its own loans by

affiliated or unaffiliated creditors, or modifying a

loan agreement, whether or not the existing loan is

satisfied and replaced by the new loan, and charging a

fee;

(e) in connection with credit secured by the consumer’s

dwelling that does not meet the definition of open-end

credit defined at 12 C.F.R. Section 226.2(a)(20), a

creditor shall not structure a home-secured loan as an

open-end plan to evade the requirements of subsection

(10) of Section 1-301 of Title 14A of the Oklahoma

Statutes;

(f) a subsection 10 mortgage referred to in subsection

(10) of Section 1-301 of Title 14A of the Oklahoma

Statutes shall not contain a mandatory arbitration

provision that:

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(i) does not comply with rules set forth by a

nationally recognized arbitration organization

such as the American Arbitration Association,

(ii) does not require the arbitration proceeding to be

conducted:

(aa) within the federal judicial district in

which the subject property is located,

(bb) in the city nearest the obligor's residence

where a federal district court is located,

or

(cc) at such other location as may be mutually

agreed upon by the parties,

(iii) does not require the creditor to contribute at

least fifty percent (50%) of the amount of any

filing fee, and

(iv) does not require the creditor to pay standard

daily arbitration fees, both its own and those of

the obligor, for at least the first day of

arbitration;
re a federal district court is located,

or

(cc) at such other location as may be mutually

agreed upon by the parties,

(iii) does not require the creditor to contribute at

least fifty percent (50%) of the amount of any

filing fee, and

(iv) does not require the creditor to pay standard

daily arbitration fees, both its own and those of

the obligor, for at least the first day of

arbitration;

(g) a creditor or its servicer shall report at least

quarterly both the favorable and unfavorable payment

history information of the obligor on payments due to

the creditor on a subsection 10 mortgage to a

nationally recognized consumer credit reporting

agency. This subsection shall not prevent a creditor

or its servicer from agreeing with the obligor not to

report payment history information in the event of a

resolved or unresolved dispute with the obligor and

shall not apply to subsection 10 mortgages held or

serviced by a creditor for less than ninety (90) days.

(3) Preemption. The laws of this state relating to the

brokering, originating, making, servicing and collecting of mortgage

loans subject to Title 14A of the Oklahoma Statutes prescribe rules

of conduct on citizens generally, comprise a comprehensive

regulatory framework intended to operate uniformly throughout the

state under the same circumstances and conditions and constitute

general laws of this state. Silence in the statutes of this state

with respect to any act or practice in the brokering, originating,

making, servicing or collecting of mortgage loans subject to Title

14A of the Oklahoma Statutes shall not be interpreted to mean that

the state has not completely occupied the field or has only set

minimum standards in its regulation of brokering, originating,

making, servicing or collecting of mortgage loans subject to Title

14A of the Oklahoma Statutes. It is the intent of the Legislature

to entirely preempt political subdivisions from the regulation and

licensing of persons engaged in the brokering, originating, making,

servicing or collecting of mortgage loans subject to Title 14A of

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the Oklahoma Statutes in this state. No political subdivision shall

enact any ordinance, resolution, local regulation, rule or law that

regulates, directly or indirectly, the brokering, originating,

making, servicing or collecting of mortgage loans subject to Title

14A of the Oklahoma Statutes, the terms of mortgage loans subject to

Title 14A of the Oklahoma Statutes or that makes the eligibility of

any person or entity to do business with the political subdivision

dependent on the terms of mortgage loans subject to Title 14A of the

Oklahoma Statutes originated or serviced by such person or entity or

that imposes any reporting requirements or other obligations on a

person, or its subsidiaries or affiliates engaged in the brokering,

originating, making, servicing or collecting of mortgage loans

subject to Title 14A of the Oklahoma Statutes in this state. For

purposes of this section, "political subdivision" means any county,

city, town, school district, or other local governmental or public

entity, located within this state.

(4) Nothing in this section shall be construed to invalidate or

prohibit any ordinance, resolution, regulation, rule or law by a

political subdivision to establish and administer voluntary

neighborhood reinvestment programs in furtherance of the goals and

purposes of the "Community Reinvestment Act of 1977", 91 Stat. 1147,

12 U.S.C.A. 2901, as amended.

(5) Nothing in this section shall be construed to invalidate

any ordinance, resolution, local regulation, rule or law by a

political subdivision that is required to meet the criteria for

adequacy of law established by the United States Department of

Housing and Urban Development in order to obtain certification as a

fair housing assistance program.