Louisiana Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1096(J) | Application Fee Disclosure | Mortgage lenders may not assess, contract for, or receive any advance expense deposit for third-party settlement services in advance that exceeds the good faith estimate of the actual cost of the settlement service. Any portion of an advance expense deposit which exceeds the actual cost of a third-party settlement service must be refunded to the borrower or credited to the borrower's account at the time of the closing of the loan. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1096(J) | Application Fee Disclosure | A mortgage broker may not assess, contract for, or receive any type of fee, interest, or other charge in advance, except for expense deposits from a potential borrower for the procurement of a loan. An advance expense deposit may not exceed the good faith estimate of the actual cost of any appraisal, title search, credit reports performed by an independent person and required by the originating lender for the evaluation of the potential borrower's loan application, or the actual cost of any charge of no more than $25 assessed to a mortgage broker by Fannie Mae for “Desktop Underwriter” or Freddie Mac for “Loan Prospector.” |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1102(A) | Business Affiliation Disclosure | A reverse mortgage lender shall disclose to the prospective borrower in writing any other payment arrangements or business affiliations between the lender and a counseling agency. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1103 | Commitment Letter (7 days prior to closing) | At least 7 calendar days prior to closing a reverse mortgage loan, a reverse mortgage lender shall provide the borrower with a loan term sheet or commitment letter outlining the proposed terms of the loan and informing the borrower that the borrower is not obligated to proceed with the loan transaction. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1102(B) | Counseling Certification | A lender cannot accept a final and complete application or assess any fees prior to the borrower providing a certification they have received counseling from an approved agency. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1096(G)(3) | Credit Insurance | A mortgage lender must not finance or include in the original principal balance of a residential mortgage loan of more than $50,000 the premium amount for any single premium credit life, dismemberment, health and accident, mortgage life and disability, involuntary unemployment, collateral protection, or debt cancellation insurance sold in connection with a residential mortgage loan transaction unless that portion of original principal balance attributable to the insurance premium is scheduled to be fully amortized no later than the coverage expiration date of the insurance product. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1097 | Executed Disclosures for Fees | Fees, charges, costs, and expenses not considered interest or defined as finance charges under federal Regulation Z, the parties to a federally related mortgage loan may agree to the payment of any fees, charges, costs, and expenses, and the amounts thereof, if the fees, charges, costs, and expenses, and the amounts, or the methods for setting the amounts, are provided in writing signed by the borrower. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1102(A) | List of Counseling Agencies | Prior to accepting a final and complete application for a conventional reverse mortgage loan or assessing any fees, a lender must provide the borrower with a list of at least 5 approved nonprofit counseling agencies. The agencies must be approved by the U.S. Department of HUD and must meet the minimum standards and requirements. Reverse mortgage lenders cannot pay any counseling service fees prior to informing the borrower in writing that this could create a conflict of interest. Lenders must disclose, in writing, to a borrower any other payment arrangements of business affiliation between the lender and the counseling agency. |
| Consumer Credit Law / La. Rev. Stat. Ann. §9:3572.11(A) | Loan Brokerage Agreement and Disclosure Statement | Each application for a consumer or federally-related mortgage loan in which a loan broker is involved must be accompanied by a written “Loan Brokerage Agreement and Disclosure Statement” which must be signed by all contracting parties. A copy of the signed agreement must be presented to the applicant at the time of signing. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1096 | Loan Originator Signature | The person acting as originator in a residential loan transaction shall sign the original mortgage loan application. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1098 | Mortgage Loan Origination Agreement | Each residential mortgage loan brokerage contract shall be in writing and signed by all contracting parties. The mortgage broker shall retain a signed copy of the residential mortgage loan brokerage contract in the customer's file. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1096(I) | NMLS Unique Identifier | The person acting as originator in a residential loan transaction must sign the original mortgage loan application and if applicable, include in the original mortgage loan application the NMLS unique identifier assigned to that person. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1104(A) | Notice to Reverse Mortgage Borrower | Any lender who offers, sells, or arranges the sale of a reverse mortgage to a borrower who is 60 years or older must provide the borrower with a notice that the borrower should discuss specific information with a counselor. |
| Secure and Fair Enforcement for Mortgage Licensing Act / La. Rev. Stat. Ann. §6:1101(D) | Reverse Mortgage Statement | The first page of any mortgage securing a reverse mortgage loan must contain the following language in 10-point boldface type: “This mortgage secures a reverse mortgage loan”. |