North Dakota Origination Reference Guide

Owned by Kacey Olson
Aug 29, 2017
3 min read

CitationTopicRequirement
Money Broker Rules / N.D. Admin. Code §13-05-01-04(2)

Balloon Payment Disclosure

If there is a balloon payment to pay off a loan in full, the following cautionary instructions must be printed in bold type on the contract: CAUTION TO BORROWER: IF YOU DO NOT HAVE THE FUNDS TO PAY THE BALLOON PAYMENT WHEN DUE, IT MAY BE NECESSARY FOR YOU TO OBTAIN A NEW LOAN AGAINST YOUR PROPERTY FOR THIS PURPOSE AND YOU MAY BE REQUIRED TO AGAIN PAY COMMISSION AND EXPENSES FOR ARRANGING THE LOAN. KEEP THIS IN MIND IN DECIDING UPON THE AMOUNT AND TERMS OF THE LOAN THAT YOU OBTAIN AT THIS TIME.
Money Broker Rules / N.D. Admin. Code §13-05-01-10

Copies of Written Contracts

A copy of all written contracts between the money broker and the potential borrower must be given to the potential borrower at the time the contract is signed.
Cain v. Merchants Nat. Bank & Trust Co. of Fargo, 268 N.W. 719, 723 (N.D. 1936)

Document Preparation Fee

“[A] person who is not a member of the bar may draw instruments such as simple deeds, mortgages, promissory notes, and bills of sale when these instruments are incident to transactions in which such person is interested, provided no charge is made.” 
Money Broker Rules / N.D. Admin. Code §13-05-01-04

Loan Disclosure Statement

Whenever a money broker arranges a loan for a borrower, the following loan disclosure statements must be prepared by the money broker for the borrower and set forth in a plain language and meaningful order: 1) Summary of loan terms. Money brokers must provide all loan disclosures mandated under TILA and RESPA. 2) General information concerning loans: a) The amount of principal and interest payable, the interest rate, the number of payments and whether they are monthly or quarterly, and whether there is a final or balloon payment to pay off the loan in full. If there is a balloon payment, see Balloon Payment in this listing; b) Other information necessary including the land description, types of instruments to be executed, and type of lien that will be against the property if the instruments are executed; c) any prepayment penalty on full disclosure of the terms thereof; d) Whether credit life or credit disability will be required of the borrower as a condition of making the loan. Also see Notice to Borrower Regarding Regulation by Department.
Money Broker Rules / N.D. Admin. Code §13-05-01-02.

Money Broker Contract

Before a money broker performs any services for a potential borrower, the money broker and the borrower must enter into a written contract specifying the duties and conditions under which the money broker will perform the broker's services. The contract must: (1) fully disclose estimated commissions and fees; (2) have a definite expiration date; (3) indicate costs to be paid if the loan is not closed; and (4) designate the timing of fee payments (i.e., on commitment, on closing, on funding). Mortgage lenders and mortgage brokers fall under the definition of money broker.
Mortgage Loan Originator Act / N.D. Cent. Code §13-10-21

NMLS Unique Identifier

The NMLS unique identifier of any person originating a residential mortgage loan must be clearly shown on all residential mortgage loan application forms, solicitations or advertisements, including business cards or web sites, and on any other documents as established by the Department.
Money Broker Rules / N.D. Cent. Code §35-03-01.3

United States Veterans Administration Notice

The following notice must be signed at the time of the loan application by both the borrower and lender on loans that are insured or guaranteed by the VA: I understand that the veterans' administration may attempt to hold me liable for the guarantee it offers the lending institution on this mortgage. I understand that it may be alleged that I may remain liable for the amount guaranteed by the veterans' administration if this mortgage is foreclosed or if the property is sold by me without first obtaining an approved release of liability from the veterans' administration. I also understand that it may be alleged that North Dakota law governing deficiency judgments may not apply to the collection of loans guaranteed by the veterans' administration. By signing this statement, I am indicating that the contents of this statement have been explained to me by a loan officer representing the lending institution offering this mortgage loan.