Although compliant with Illinois law (specifically Ill. Admin. Code tit. 38, §1050.1010), a textual change will be made to Cx1909 to specify that the borrower is not obligated to pay the Broker Loan Fee when the mortgage transaction contains lender-paid broker compensation, as well as to make the language of the document more organized.
This change consists of merging the language in Sections 4 and 5 together into a new Section 4 and renumbering subsequent Sections accordingly. The new language of Section 4 will be as follows:
“Broker Loan Fee. $X.XX OR XX% of the loan amount. At the time the Broker obtains a mortgage loan commitment, the Borrower agrees to pay the Loan Fee to the Broker for obtaining the mortgage loan commitment. THE LOAN FEE IS AN OBLIGATION OF THE BORROWER UPON COMMITMENT AND SHALL BE PAID AT THE TIME OF THE LOAN CLOSING OR OUT OF THE LOAN PROCEEDS UNLESS THE BROKER WILL BE RECEIVING COMPENSATION EXCLUSIVELY FROM THE LENDER. UNDER SUCH CIRCUMESTANCE, BORROWER IS NOT ALLOWED NOR OBLIGATED TO PAY THE BROKER ANY COMPENSATION OR BROKER LOAN FEE, PURSUANT TO FEDERAL LAW (12 CFR §1026.36[d]).
The Borrower agrees to pay the Broker, at the time of application, certain costs of the application that may include reimbursement to third parties for costs such as credit reports and appraisals as set forth in a separate Good Faith Estimate provided to the Borrower. The estimate of costs and the actual costs could be affected by conditions which could not be known by the Broker at the time of signing this Agreement. These conditions may include, but are not limited to, an appraised value different from that estimated by the Borrower or credit obligations which the Borrower fails to report. Borrower agrees to pay reasonable costs of the Broker in connection with the mortgage application.”
This change will take effect on March 30, 2012. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584
March 28, 2012