428.203 Prohibitions on and requirements of lenders and assignees.

226 words·~1 min read·/wi/chapter-428/428-203

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Balloon payments. Except as otherwise provided in this subsection, no lender may make a covered loan to a customer that requires, or that permits the lender to require, a payment that is more than twice as large as the average of all earlier scheduled payments. This subsection does not apply to a loan under which the payment schedule is adjusted to account for seasonal or irregular income of the customer or to a bridge loan with a maturity of less than one year that the customer obtains for the purpose of facilitating the acquisition or construction of a dwelling as the customer’s principal dwelling.

(2)Call provision. No lender may make a covered loan to a customer that permits the lender or an assignee of the loan to demand payment of the outstanding balance before the original maturity date, except that a covered loan may permit a lender or assignee to so demand as a result of any of the following:

(a)The customer’s failure to make payments required under the loan.

(b)A provision in the loan agreement permitting the lender or assignee to make such a demand after the sale of real property that is pledged as security for the loan.

(c)Fraud or material misrepresentation by the customer in connection with the loan.