Pursuant to the findings of our annual state-specific disclosure audit, our “DE Mortgage Loan Broker Regulations” (cx3593) and “DE Broker Agreement” (cx3583) will now be generated only when a loan is secured by owner-occupied property.
Both documents are required to given in connection with a “mortgage loan,” which is defined under Del. Code Ann. tit. 5, §2101(4) as “an extension of credit secured by a first or secondary mortgage on any 1-to-4 family residential owner-occupied property . . .”
Cx3593 is required under 5 Del. Admin. Code §2103-1.0 and should be made “available for review to every applicant . . . at the time when such application is made.” Cx3583 is required under Supra, §2113 and 5 Del. Admin. Code §2104-2.0 and must be agreed to before a licensee under Chapter 21, Title 5 of Delaware’s Code receives any “fee for acting as a mortgage loan broker.”
These changes will go into effect on November 9, 2011.
November 7, 2011