2001-H 5151
Enacted 07/13/2001

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Introduced By:  Representatives Hogan, Lewiss, Schadone and Anguilla Date Introduced:  January 17, 2001

It is enacted by the General Assembly as follows:

SECTION 1. Section 34-23-6 of the General Laws in Chapter 34-23 entitled "Mortgages of Real Property" is hereby amended to read as follows:

34-23-6. Disclosure requirements -- In the event any brokerage fees, loan fees, points, finders' fees, origination fees, or any similar charges shall be imposed on any secured mortgage loan on real estate containing thereon dwelling houses of not more than four (4) dwelling units, those charges must be disclosed within the mortgage documents and the disclosure shall contain specific reference to the fact that in the event the underlying loan contract is prepaid in full, the loan fees or other similar charges shall not be subject to any refund. Nothing herein shall require said fees or charges to be displayed directly on the mortgage document so long as they are disclosed to the prospective borrower in both the "Good Faith Estimate" and the "Truth In Lending" disclosures.

SECTION 2. This act shall take effect upon passage.

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