§ 590-B — Responsibilities

§ 590-b. Responsibilities. 1. Each mortgage broker shall, in addition\nto the duties imposed by otherwise applicable provisions of state and\nfederal law, with respect to any transaction, including any practice, or\ncourse of business in connection with the transaction, in which the\nmortgage broker solicits, processes, places or negotiates a home loan:\n (a) act in the borrower's interest;\n (b) act with reasonable skill, care and diligence;\n (c) act in good faith and with fair dealing;\n (d) not accept, give, or charge any undisclosed compensation, directly\nor indirectly, that inures to the benefit of the mortgage broker,\nwhether or not characterized as an expenditure made for the borrower;\n (e) clearly disclose to the borrower, not later than three days after\nreceipt of the loan application, all material information as specified\nby the superintendent that might reasonably affect the rights,\ninterests, or ability of the borrower to receive the borrower's intended\nbenefit from the home loan, including total compensation that the broker\nwould receive from any of the loan options that the lender or mortgage\nbroker presents to the borrower; and\n (f) diligently work to present the borrower with a range of loan\nproducts for which the borrower likely qualifies and which are\nappropriate to the borrower's existing circumstances, based on\ninformation known by, or obtained in good faith by, the broker.\n 2. No lender or mortgage broker shall improperly influence or attempt\nto improperly influence the development, reporting, result or review of\na real estate appraisal relating to real property securing a home loan,\nprovided that it shall not be a violation of this prohibition to:\n (a) ask an appraiser to consider additional information about a\nborrower's principal dwelling or about comparable properties;\n (b) request that an appraiser provide additional information about the\nbasis for a valuation;\n (c) request that an appraiser correct factual errors in a valuation;\n (d) obtain multiple appraisals of a borrower's principal dwelling, so\nlong as the lender or mortgage broker adheres to a policy of selecting\nthe most reliable appraisal, rather than the appraisal that states the\nhighest value;\n (e) withhold compensation from an appraiser for breach of contract or\nsubstandard performance of services;\n (f) terminate a relationship with an appraiser for violations of\napplicable state or federal law or breaches of ethical or professional\nstandards; and\n (g) take action permitted or required by applicable state or federal\nstatute, regulation, or agency guidance.\n 3. Any mortgage broker found by a preponderance of evidence to have\nviolated subdivision one of this section, shall be liable to the\nborrower for actual damages.\n 3-a. In connection with the making or brokering of a home loan, no\nperson may provide, and no mortgage broker or mortgage lender may\nreceive, directly or indirectly, any compensation that is based on, or\nvaries with, the terms of any home loan. This subdivision shall not\nprohibit compensation based on the principal balance of the loan.\n 4. Any lender or mortgage broker found by a preponderance of evidence\nto have violated subdivision two of this section, shall be liable to the\nborrower for actual damages.\n 5. A borrower may be granted injunctive, declaratory, and such other\nequitable relief as the court deems appropriate in an action to enforce\ncompliance with this section.\n 6. A court may also award reasonable attorneys' fees to a prevailing\nborrower in a foreclosure action.\n 7. The attorney general or the superintendent may enforce the\nprovisions of this section.\n 8. The remedies provided in this section are not intended to be the\nexclusive remedies available to a borrower.\n