With regard to nonpurchase money mortgages (i.e. refinances), which of the following is an accurate statement according to Rhode Island law?

The correct answer highlights that nonpurchase money mortgages, specifically refinances, are not considered high-cost mortgages under Rhode Island law. This is significant because high-cost mortgages are subject to stricter regulations intended to protect borrowers from predatory lending practices. By classifying refinances outside this category, the law creates a different regulatory framework, which may provide greater flexibility for both lenders and borrowers in refinancing transactions.

In contrast, the other options do not accurately reflect the legal framework governing nonpurchase money mortgages. For instance, while some refinances could qualify as qualified mortgages, not all are guaranteed to meet the set criteria without meeting specific underwriting and borrower criteria. Furthermore, although nonpurchase money mortgages may have some specific disclosure requirements, they do not necessarily have different or lesser requirements overall; regulatory guidelines must still be followed. Lastly, it would be misleading to state that such mortgages may be exempt from all regulations, as they are still subject to various consumer protection laws and lending regulations despite not being categorized as high-cost mortgages.