Vt. Stat. Ann. tit. 8, §2220 requires the following:
“In advance of taking any fee or collecting any charges for a mortgage loan, or at the time the prospective borrower submits a signed application, a written disclosure shall be provided by the lender to the prospective borrower setting forth all provisions relating to interest rates applicable to the loan, and specific disclosure regarding any possibility that the lender may change its role to that of a mortgage broker. This section shall not apply to commercial loans.”
This requirement requires two disclosures: one for interest rates, the other as to whether a lender can change its role to a broker. The first disclosure requirement is fulfilled by various Federal disclosures, such as the Good Faith Estimate and Initial Truth-in-Lending Disclosure, which DocuTech provides.
For the second requirement, DocuTech has provided Cx4816 to clients, upon request. However, due to the broad application of this requirement, it has been decided to print Cx4816 as a generic document in all Vermont initial disclosure packages for loan transactions in which a client is acting as a lender, in order to ensure compliance with Vermont’s laws.
Some textual edits will be made to the document, primarily for grammatical and aesthetic purposes. Of substantial change is the inclusion of a selection within the document for a client to disclose whether or not they have the ability to act as both a lender and a broker in the state of Vermont. Clients will be prompted for this information in ConformX and, based on this information, the appropriate checkbox will be marked in the selection.
This change will take effect on May 02, 2012. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
April 24, 2012