Posted by Marc Donovan on December 24, 2002 at 19:40:40:
Yes they do. They always have. Look at GovInfo and find section (aa). Its been illegal to charge more than 10% over the rate on the similar term treasuries. This applies to any loan secured by the owner’s residence (including mobile homes) unless it is exempt due to it being a purchase money mortgage.
That’s why no one wants to by notes manufactured by the home owner. If the discount is more than 10% over treasury, its usurous.
GA rules probably refer to this 15 USC 1602 (aa) rule. A lot of states have recently added these laws. Basically, it gives the state the power to prosecute on these loans instead of waiting for the feds to prosecute. Its a me-too law that was always there on the federal level, just never enforced.
As long as the loan is purchase money, it does not apply. Check your statutes to be sure this is correct.