2011 -- H 5510
A N A C T
RELATING TO PROPERTY
Introduced By: Representatives Lally, and Jackson
Date Introduced: March 02, 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:
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
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
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
The applicant shall sign an acknowledgement of receipt of such disclosure and notice.
SECTION 2. This act shall take effect upon passage.