Several sections of Chapter 13-05-01 of North Dakota’s Administrative Code set forth requirements for the content of a money broker contract, as well as certain disclosures which must be provided. We have been providing Cx1904 for the contract requirements found in Sections 2, 5, and 9 of this Chapter, and Cx1905 for the disclosure requirements found in Sections 3 and 4.
We will be making the following modifications to Cx1904:
1. The “Estimated Commissions and Fees” section will be modified by filling in information for each of the three columns. Under the “Description of Fee” column we will print a description of each HUD-1 Fee, with a corresponding amount appearing under the “Amount” column. We will print either “Commitment/Prior to Closing” or “Closing” under the “Time of Payment” column (based on if a POC amount for the fee is present) to indicate when the fee is to be paid.
2. We will be adding new fields to the current blank lines under the “Costs if a Loan is Not Found” section. A description of the costs will print if Fields 79950 through 79952 (“Costs if a Loan is Not Found Description”) contain a value, with the corresponding amounts printing as well when Fields 79956 through 79958 (“Costs if a Loan is Not Found Amount”) contain a value.
3. Similar to Change #2 above, we’ll be adding new fields to the blank lines under the “Costs if a Loan is Not Closed” section: Fields 79953 through 79955 (“Costs if a Loan is Not Closed Description”) and Fields 79959 through 79961 (“Costs if a Loan is Not Closed Amount”).
The following modifications will be made to Cx1905:
1. We will be deleting the first five disclosures in the document, since these are no longer required under the Administrative Code.
2. We will be changing the caption for the “Principal and Interest” disclosure to “Principal and Interest X Payments”, and “Number of Monthly Payments” to “Number of X Payments”, with “X” standing for the type of payments (i.e. biweekly or monthly).
3. We will be triggering the balloon payment notice to print only when the checkbox indicating that a balloon payment is required is checked. The text accompanying this checkbox will also only display the “Read the following notice:” clause if the box is checked.
4. We will hardcode “Note and Mortgage” for the list of instruments to be executed in connection with the loan.
5. We will be filling out the Prepayment Penalty details section using existing prepayment penalty fields.
6. We will be checking the appropriate checkbox concerning whether or not Credit Life and Disability Insurance is a condition of obtaining a loan.
7. The last checkbox on the form concerning the borrower’s ability to refuse to accept a loan commitment if the estimated fees on the form are exceeded by a certain percentage will be deleted, since it is no longer required under the Administrative Code.
8. The clause “‘e’ designates figures which are estimates” will also be deleted, again because it is no longer required.
These changes will be in effect on March 29, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
March 22, 2014
DR 149574