D.C. Code Ann. §§ 26-1113(a) & (b) (2013) requires a licensee under Chapter 11, Title 26 of the District of Columbia’s Code (Ibid. §§ 26-1101 through 26-1121) to provide a borrower with a financing agreement (which is executed by the lender), in which several of the terms of the loan are disclosed. It also requires the licensee to provide a “final” financing agreement at least 72 hours before settlement (unless otherwise waived) which discloses the effective interest rate that will be applied to the loan, as well as a restatement of the remaining unchanged provisions of the original agreement.
We provide two different financing agreements, the “final” one being Cx13979. Pursuant to our yearly audit of state-specific disclosures, we will be making the following changes to this document:
1. We will be removing the first sentence (“You have applied for a mortgage loan on the Property”), since it is not necessary.
2. Removing the “Interest Rate” section located immediately following the current second paragraph, since a disclosure of the interest rate is already made in the current third paragraph.
3. Making minor grammatical and wording changes, to make the document easier to read and more consistent (i.e. using a third person narrative throughout the document, rather than a mix between this and a first-person narrative).
4. Including a new second-to-last paragraph, which allows clients to enter their own custom text for additional terms that they would like to add.
5. Including a clause in the Acknowledgment section, in which the borrower agrees to the terms of the Agreement (rather than just acknowledging that they received the Agreement).
6. Adding the NMLS numbers of the loan originator, lender, and broker (if any) at the end of the document.
Due to a frequently asked question concerning whether we provide a written commitment for loans secured by property located in the District (pursuant to D.C. Code Ann. § 26-1114[a] ), please note that D.C. Mun. Regs. tit. 26C, §§ 1117.1 through 1117.3 (2013) stipulate that a “final” financing agreement, which also contains all of the terms required of a written commitment, may be provided in lieu of such commitment. This being the case, we provide Cx13979 to cover both the financing agreement and commitment requirements.
These changes will take effect on October 4, 2013. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584
September 27, 2013