Opinion ID: 2300219
Heading Depth: 2
Heading Rank: 2

Heading: District of Columbia Home Loan Protection Act

Text: We come to the same conclusion with respect to Count II: The loan transaction between Onyeoziri and BB & T does not come within the terms of HLPA. HLPA prohibits a lender from making a covered loan that provides for a scheduled payment that is more than twice as large as the average of earlier scheduled monthly payments unless the balloon payment becomes due and payable not less than 7 years after the date of the loan closing. D.C.Code § 26-1152.13 (2011 Supp.). Not all loans with balloon payments are covered by HLPA, however. For purposes of the statute, a covered loan is: a mortgage loan, secured by property located in the District ... in which the terms of the mortgage loan exceed one or more of the following thresholds: (i) The loan is secured by a first mortgage on the borrower's principal dwelling and the annual percentage rate at closing will exceed by more than 6 percentage points the yield on United States Treasury securities having comparable periods of maturity to the loan maturity measured as of the 15th day of the month immediately preceding the month in which the application for the residential mortgage loan is received by the creditor; (ii) The loan is secured by a junior mortgage on the borrower's principal dwelling and the annual percentage rate at closing will exceed by more than 7 percentage points the yield on United States Treasury securities having comparable periods of maturity to the loan maturity measured as of the 15th day of the month immediately preceding the month in which the application for the residential mortgage loan is received by the creditor; or (iii) The origination/discount points and fees payable by the borrower at or before loan closing exceed 5% of the total loan amount. Id. § 26-1151.01(7)(A). In addition, the statute provides that if a loan is made by a federally regulated bank, it will be deemed a covered loan only if it meets the definition of mortgage in TILA. Id. § 26-1151.01(7)(B). [14] TILA defines mortgage as a consumer credit transaction that is secured by the consumer's principal dwelling, other than a residential mortgage transaction, a reverse mortgage transaction, or a transaction under an open end credit plan. 15 U.S.C. § 1602(bb)(1). As with Onyeoziri's TILA claim, his HLPA claim is barred by the plain statutory language because the note was a business loan secured by Onyeoziri's rental property. See Phrasavang v. Deutsche Bank, 656 F.Supp.2d 196, 204 (D.D.C.2009) (dismissing plaintiff's HLPA claim, in part, because plaintiff conceded that the loan was not secured by his principal dwelling). Onyeoziri, therefore, cannot make out a claim for a HLPA violation because HLPA does not cover his transaction with BB & T. As there are no material facts genuinely in dispute, and the record shows appellees are entitled to judgment as a matter of law, the trial court did not err in granting appellees' motion for summary judgment with regard to the statutory claims in Counts I and II of the amended complaint.