Pursuant to our yearly audit of state-specific disclosures, we will be creating a new Missouri lock-in agreement (Cx16677) and editing the MO Loan Brokerage Disclosure Statement and Agreement (Cx3328), as follows:
The current version of Cx3328 was formatted in such a way as to conform with the provisions of Mo. Code Regs. Ann. tit. 20, § 1140-30.080(1) & (2), which section has been repealed. This document is still required under Mo. Ann. Stat. § 443.867 however, so we will be streamlining it to conform to such and will delete any unnecessary provisions which were required under the now-repealed administrative laws.
Changes include the following:
1. Changing the title of the document from “Loan Brokerage Disclosure Statement and Agreement” to “Loan Brokerage Agreement”;
2. Removing the language preceding the text of the document concerning the names of any parent or affiliated company, as well as the year in which the broker began brokering loans;
3. Deleting the “Loan Brokerage Disclosure Statement” section, except for the first sentence which will be the first sentence of the “Loan Brokerage Agreement” section;
4. Deleting references to obsolete laws;
5. Removing the first notice under the “Loan Brokerage Agreement” section;
6. Changing the narrative from third-person to second-person;
7. Deleting the last sentence in Clause 4 concerning the borrower agreeing to pay other reasonable costs of the broker in connection with the mortgage application. This is done pursuant to the restrictions imposed by Mo. Code Regs. Ann. tit. 20, § 1140-30.280 which prohibit the broker from collecting fees prior to closing, except for third-party charges necessary for processing the loan application and a rate-lock fee.
8. Also due to Ibid., we will be restructuring the first sentence of Clause 4 into two sentences, to specify that credit report fees may be collected at the time of application (since such fees are necessary for processing a loan application) and to specify that other third party fees (such as for appraisals) which may or may not be necessary for processing an application can be collected if allowed by applicable law.
9. Change Clause 5 to print dynamic language, based upon whether the broker is receiving compensation directly from the borrower or from the lender;
10. Deleting Clause 8, which refers to the two sections of the document which are being incorporated into one;
11. Deleting Clause 10 (concerning the agreement being the only one between the borrower and the broker) and replacing it with a citation to Mo. Ann. Stat. § 443.867.
This document is being created pursuant to the provisions of Mo. Code Regs. Ann. tit. 20, § 1140-30.280, which prohibits a broker from collecting a rate-lock fee unless a rate-lock fee agreement is entered into between the borrower and a proposed lender. The first paragraph of the agreement is a preamble with a general recital typical in most agreements. The following part sets forth the terms of the agreement, such as the interest rate being locked.
The second paragraph informs the borrower that, subject to verification, the loan will be approved and will have the terms set forth in the agreement (as required under Missouri law). The third paragraph sets forth the conditions of the agreement, such as the amount of the lock-in fee (if any) and when, how, and under what conditions the lock-in fee will be refunded. The last paragraph sets forth the expiration date of the agreement.
This agreement will print under the following conditions:
- “Document Package Type” equals “Initial Disclosure”;
- “Lender is a Broker?” equals “No”;
- “Lock-in Fee Charged on Loan” equals “Yes”;
- “Rate Lock Initiated?” equals “Yes”; and
- “State Code” equals “Missouri”.
These changes and the availability of Cx16677 will take effect on July 3, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
June 26, 2014