FOR IMMEDIATE RELEASE                                        

For more information contact:

Carleton Sales Team

574.243.6040 option #3

sales@carletoninc.com

 

Oklahoma Maximum Rate Adjustment for Loans Going into Effect

 

As reported in Carleton's May 2023 Compliance Alert, Oklahoma Senate Bill 794 added the federal funds rate to the maximum allowed charge for loans. The change affects Supervised Loans under §3-508A of the Oklahoma Code. This change goes into effect November 1, 2023.

 

Provisions Impacting Computational Requirements:

• The revised maximum rate structure under §3-508A will be the greater of either:
  • 32% + Federal Funds Rate on the unpaid principal balance up to $7,000
  • 23% + Federal Funds Rate on the unpaid principal balance up to $11,000
  • 20% + Federal Funds Rate on the remaining unpaid principal balance

 

--- OR ---

 

• 25% + Federal Funds Rate

• The applicable Federal Funds Rate is defined as:

“[T]he rate published by the Board of Governors of the Federal Reserve System in its statistical release H.15 Selected Interest Rates and in effect as of the first day of each month immediately preceding the month during which the loan is consummated.”

 

Carleton has added the capability to download the Federal Funds Rates from the Federal Reserve System along with the ability to pull the correct Federal Funds Rate based on contract date and the lookback period rules established in this legislation within the CarletonCalcs® Platform.  This greatly lessens the burden on the end user.

Carleton has maintained regular communication with industry professionals and trade associations to ensure we are assisting our clients to implement these necessary updates. The information contained herein is for informational purposes only and shall not be construed as legal advice.

 

About Carleton, Inc.:

Carleton is the country's leading provider of financial calculation software, loan origination compliance support, and document generation software. With over 50 years of experience, our ongoing expertise and industry knowledge reaffirms why we are a trusted partner.  Founded in conjunction with the Truth In Lending Act, Carleton provides expert compliance support with continuous accuracy in all our calculations and disclosures at a state and federal level. To learn more about Carleton's lending solutions, visit www.carletoninc.com or contact our sales team at sales@carletoninc.com or 574-243-6040 option #3.