Chapter 344

2011 -- S 1079

Enacted 07/13/11





     Introduced By: Senator Michael J. McCaffrey

     Date Introduced: June 23, 2011  


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 Loan fees. -- 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 shall not be subject to any refund in the event the underlying loan

contract is prepaid in full provided that the loan originator, broker or lender gives the following

disclosure to the loan applicant in writing: and shall be disclosed in writing to the applicant either

by delivering such disclosure or by placing it in the mail to the loan applicant, not later than three

(3) business days after the application is received. The disclosure, which may be a form of good

faith estimate under the federal real estate settlement procedures act, shall contain an itemization

of such fees and charges. The applicant also concurrently shall be given the following notice:

"Notice regarding nonrefundability of loan fees: You have received a good faith estimate or other

itemization of fees and charges showing the loan fees and similar charges you are likely to pay to

obtain this loan. As provided in section 34-23-6, none of these or other fees and charges will be

refunded in the event the loan is prepaid in whole or in part." The applicant shall sign an

acknowledgement of receipt of such disclosure and notice.


     SECTION 2. This act shall take effect upon passage.