§ 40-23-115 — Loan commitments; prepayment penalty disclosure by mortgage broker

(a) A mortgage broker may issue a loan commitment and may
furnish a lock-in of the interest rate and program on behalf of
the mortgage lender when the mortgage broker has obtained a
written or electronically transmitted loan commitment or lock-in
for the mortgage loan from the mortgage lender on behalf of the
borrower. The loan commitment issued by the mortgage broker to
the borrower on behalf of the mortgage lender shall be in the
same form and substance as issued by the mortgage lender and
shall identify the mortgage lender by name.
(i) Repealed By Laws 2008, Ch. 76, § 2.
(ii) Repealed By Laws 2008, Ch. 76, § 2.
(iii) Repealed By Laws 2008, Ch. 76, § 2.
(iv) Repealed By Laws 2008, Ch. 76, § 2.
(b) If a prepayment penalty is a condition of the
residential mortgage loan offered to a borrower, that fact shall
be separately disclosed in writing to the borrower and the
borrower shall agree in writing to accept that condition. The
disclosure shall state that a prepayment penalty provision
imposes a charge if the borrower refinances or pays off the
mortgage loan before the date for repayment stated in the loan
agreement. The written disclosure shall be in a form prescribed
by the commissioner and shall be delivered as soon as the
condition is known, but no later than the issuance of a
commitment, for the mortgage loan product chosen by the
borrower.