§ 5.33.030. Definitions.

As used in this chapter, the following terms have the following meanings:

"Affiliate" means any business entity that controls, is controlled by, or is under common control with, another entity, as set forth in the federal Bank Holding Company Act of 1956 (12 U.S.C. § 1841, et seq.), as such statute may be amended from time to time, and includes any successors in interest or alter egos to the business entity.

"Annual percentage rate" means the annual percentage rate for a home loan calculated according to the provisions of the federal Truth in Lending Act (15 U.S.C. § 1601, et seq.) and its implementing regulations, as such statute or regulations may be amended from time to time.

"Borrower" means singularly or collectively any natural person or persons with an obligation to repay a home loan, including without limitation a coborrower, cosigner or guarantor.

"Business entity" means any individual, domestic corporation, foreign corporation, association, syndicate, joint stock company, partnership, joint venture, limited liability company, sole proprietorship or unincorporated association engaged in a business or commercial enterprise.

"City" means the city of Oakland.

"First mortgage" means a home loan secured by a deed of trust or mortgage on real property if the deed of trust or mortgage is senior in priority to any other deed of trust or mortgage on the real property.

"High-cost home loan" means a home loan that meets either of the following thresholds:

A.

The annual percentage rate of the loan equals or exceeds:

1.

By more than three percentage points, if the home loan is a first mortgage; or

2.

By more than five percentage points, if the home loan is a junior mortgage, the rate set by the required net yield for a ninety (90) day standard mandatory delivery commitment for a first mortgage loan from either the Federal National Mortgage Association or the Federal Home Loan Mortgage Association, whichever is greater, as such yield is reported on the fifteenth day of the month immediately preceding the month in which the application for the home loan is received by the lender; or

B.

the total points and fees on the loan equal or exceed either five percent of the total loan amount or eight hundred dollars ($800.00), whichever amount is greater.

If the terms of the home loan provide for an initial or introductory period during which the annual percentage rate is lower than that which will apply after the end of such initial or introductory period, then the annual percentage rate to be considered for purposes of this definition is the rate which applies after the initial or introductory period. If the terms of the home loan provide for an annual percentage rate that varies in accordance with an index plus a margin, then the annual percentage rate to be considered for purposes of this definition is the rate that is in effect on the date of loan consummation. In the case of a home loan with a regular interest rate that varies in accordance with an index plus a margin, but with an initial or introductory interest rate established in some other manner, the annual percentage rate to be considered is the rate that would have been in effect on the date of loan consummation were the regular rate determined by the index plus the margin to apply, that is, the fully-indexed rate on the date of loan consummation.

"Home loan" means a loan of money, including without limitation a line of credit or an open-end credit plan, if all of the following apply:

A.

The principal amount of the loan does not exceed the current conforming first mortgage loan size limit for a single-family dwelling as established by the Federal National Mortgage Association,

B.

The borrower incurred the loan primarily for his or her personal, family, or household uses,

C.

The loan is secured in whole or in part by a deed of trust, a mortgage (as defined under California Civil Code § 2920 or § 2924), or a similar security device or instrument, on real property located within the city,

D.

This real property contains or will contain either 1) one to four residential units, or 2) individual residential units of condominiums or cooperatives, and

E.

One of these residential units is or will be occupied by the borrower as the borrower's principal dwelling.

In the case of multiple borrowers, the criteria in subsections (B) and (E) above will be considered satisfied if at least one of the borrowers has met the stated criteria. A "home loan" does not include a reverse mortgage as defined in California Civil Code § 1923.

"Junior mortgage" means a home loan secured by a deed of trust or mortgage on real property if the deed of trust or mortgage is junior in priority to another deed of trust or mortgage on the real property.

"Lender" means any person or business entity that extends a home loan or arranges for the extension of a home loan. Notwithstanding the above, a lender does not include a bank chartered under the federal National Bank Act (12 U.S.C. § 21, et seq.), a credit union chartered under the Federal Credit Union Act (12 U.S.C. § 1751, et seq.), or a savings and loan association regulated under the federal Home Owners' Loan Act of 1933 (12 U.S.C. § 1461, et seq.); however, an affiliate of any such federally chartered or regulated bank, credit union or savings and loan association that extends home loans is considered a lender if the affiliate itself is not a bank, credit union or savings and loan association chartered or regulated under the above-referenced federal statutes.

"Mortgage broker" means any person who functions as intermediary for a fee between the borrower and the lender in the making of a home loan.

"Person" means a natural person or a business entity.

"Points and fees" means the following:

A.

All items required to be disclosed under § 226.4(a) and § 226.4(b) of Title 12 of the Code of Federal Regulations, as amended from time to time, except interest or the time-price differential;

B.

All charges for items listed under § 226.4(c)(7) of Title 12 of the Code of Federal Regulations, as amended from time to time, but only if the lender receives direct or indirect compensation in connection with the charge or the charge is paid to an affiliate of the lender;

C.

All compensation not otherwise specified in this definition paid directly or indirectly to a mortgage broker, including a broker that originates a home loan in its own name through an advance of funds and subsequently assigns the home loan to the person advancing the funds;

D.

The premium of any single premium credit life, credit disability, credit unemployment or other life or health insurance; and

E.

All prepayment fees or penalties.

Points and fees does not include any of the following:

A.

Taxes, filing fees, recording and other charges and fees paid or to be paid to public officials for determining the existence of, or for perfecting, releasing or satisfying a security interest; or

B.

Charges paid to a person other than the lender, an affiliate of the lender, a mortgage broker or an affiliate of a mortgage broker, as follows: fees for flood certification; fees for pest infestation and flood determinations; appraisal fees, fees for inspections performed prior to loan closing; credit report fees; survey fees; attorneys' fees (if the borrower has the right to select the attorney from an approved list or otherwise); notary fees; escrow charges that are not required to be disclosed under § 226.4(a) and § 226.4(b) of Title 12 of the Code of Federal Regulations; title insurance premiums; or fire insurance or flood insurance premiums (provided that the conditions in § 226.4(d)(2) of Title 12 of the Code of Federal Regulations are met).

"Total loan amount" means the total credit received by the borrower as part of the loan, excluding points and fees.

(Ord. 12361 § 2 (part), 2001)