N.Y. Comp. R. & Regs. tit. 3, §38.12 requires a mortgage broker (or a mortgage banker or an exempt entity which is acting as a mortgage broker) who is acting as a real estate broker in the same loan transaction, to provide a language-specific disclosure to the borrower and seller “at the first substantive contact” between the broker and the borrower. The disclosure must be signed by the borrower and seller before any broker-services are rendered.
This disclosure informs the borrower of the broker’s dual capacity in the transaction, what a dual capacity is, what rights the borrower has in connection with a dual agency, and whether the broker places a mortgage loan application with three or fewer mortgage lenders.
DocuTech will be providing Cx16585 for this administrative law, with language which duplicates that set forth in the law. Cx16585 will print in Initial Disclosure packages for purchase or construction transactions, when a client is acting as a broker, and when the “Dual Capacity” field is set by a client.
This document will be available on August 7, 2012. If you have any questions or concerns about this new document, please contact Client Support at 1.800.497.3584.
August 6, 2012