Vermont Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
Addendum to Residential Loan Application (Homestead) | Vermont law provides parties to a civil union with the same benefits, protections and responsibilities under law as are granted to spouses in marriage. Vermont recognizes a homestead right in the spouse or civil union partner of the legal owner of real estate, which is used or kept as their primary home, even if the spouse or civil union partner is not a co-owner of that home. This homestead interest prevents creditors from attaching the entire homestead property without the written consent of both spouses or partners. Therefore, the lender will require that both spouses or civil union partners sign the mortgage deed, or otherwise waive their homestead interest in the property, in order to insure that it is fully enforceable. | |
| Advisory Ethics Opinion / Vt. Advisory Ethics Opinion 99-3 | Attorney Closing State | Loan closings may only be performed by attorneys. However; a paralegal may also perform loan closings if an attorney is available by telephone to answer legal questions. The paralegal may not explain the legal significance of the documents to be executed and may not answer legal questions. |
| Licensed Lenders Act / Vt. Stat. Ann. tit. 8, §2229 | Blank Spaces | A licensee may not have any instrument in which blank spaces are left to be filled in after execution. |
| Regulation B-98-1 | Commitment Letter | All lenders shall issue a commitment letter in connection with every mortgage loan. The commitment letter shall be signed by the lender. A commitment letter may be signed electronically pursuant to the Vermont Uniform Electronic Transactions Act, 9 V.S.A. §§270 – 290, as amended from time to time. All commitment letters, except as provided in subsections 5(A), 5(B), and 5(C) of this regulation, shall be delivered to the borrower no less than three business days prior to the closing. |
| Commerce and Trade / Vt. Stat. Ann. tit. 9, §102 | Cosigner Notice | If a lender requires the signature of an obligor jointly and severally, the instrument evidencing the obligation must contain on its face the following notice, conspicuously placed, in at least 10-point bold type: NOTICE TO COSIGNER: YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY LIABLE FOR REPAYMENT OF THIS LOAN. IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM YOU. |
| Commerce and Trade / Vt. Stat. Ann. tit. 9, §101 | Demand Notice | A demand note must contain on its face the following notice in a size equal to at least 10-point bold type: NOTICE TO BORROWER: THIS IS A DEMAND NOTE AND SO MAY BE COLLECTED BY THE LENDER AT ANY TIME. A NEW NOTE MUTUALLY AGREED UPON AND SUBSEQUENTLY ISSUED MAY CARRY A HIGHER OR LOWER RATE OF INTEREST. |
| Licensed Lenders Act / Vt. Stat. Ann. tit. 8, §2220 | Disclosure of Interest and Role of Mortgage Lender | In advance of taking any fee or collecting any charges for a mortgage loan, or at the time the prospective borrower submits a signed application, a written disclosure must be provided by the lender to the prospective borrower setting forth all provisions relating to interest rates applicable to the loan, and specific disclosure regarding any possibility that the lender may change its role to that of a mortgage broker. |
| Licensed Lenders Act / Vt. Stat. Ann. tit. 8, §2232a(a) | Disclosure of Terms | A licensed lender must deliver to the borrower at the time any loan is made a statement, showing in clear and distinct terms the amount and date of the loan and of its maturity, the nature of the security, if any, for the loan, the name and address of the borrower and of the licensee, and the agreed rate of charge. No specific comment by the state regarding meeting this requirement via Regulation Z. |
| Regulation B-98-2 | High Rate, High Point Notice (Colored Paper) | If the borrower is expected to be charged in excess of 4 points or an interest rate in excess of 3% over the Declared Rate, the borrower must be presented a High Rate, High Point Notice (Notice) in conjunction with the Loan Estimate, as required by Regulation Z, or at any time that the lender notifies the borrower that the lender will only offer the borrower a high rate loan, regardless of whether the borrower or a third party will pay the points. Points shall be defined as all amounts required to be listed on a Closing Disclosure. The Disclosure has title font requirements (14 point) and shall be printed on a single sheet of colored paper that is easily distinguished from all other disclosures, applications or other loan documents presented to the borrower. The print shall be in a size equal to at least 12 point type. |
| Licensed Lenders Act / Vt. Stat. Ann. tit. 8, §2216(1) & (2) | Loan Term Maximum | 1st lien = 480 months. Subordinate Liens = 360 months. |
| Licensed Lenders Act / Vt. Stat. Ann. tit. 8, §2216(3) | Minimum Loan Amount Restrictions | The minimum loan amount a lender may make under the Vermont Licensed Lenders Act is $3,000. |
Mortgage Broker Agreement | In advance of taking any fee or collecting any charges, or at the time the prospective borrower submits a signed application, a written agreement in a form approved by the Commissioner must be prepared by a mortgage broker, and must be signed by both the mortgage broker and the prospective borrower. The agreement must set forth the particulars of the service to be performed by the mortgage broker, including specifics as to what will constitute reasonable efforts on the part of the mortgage broker to perform the agreed upon services, must state clearly that the mortgage broker will represent the interests of the prospective borrower rather than those of any lender, and must state the fee for the services. | |
| Licensed Lenders Act / Vt. Stat. Ann. tit. 8, §2244 | 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 websites, and any other documents as established by the Commissioner. In addition, the unique identifier of any person engaging in the business of lending or acting as a mortgage broker or sales finance company must be clearly shown on all loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule or order of the Commissioner. |
| Licensed Lenders Act / Vt. Stat. Ann. tit. 8, §2232a(b) | Schedule of Charges | Each licensed lender must, in advance of any loan closing, deliver to each prospective borrower, based on the type of loan applied for, a full and accurate schedule of the charges to be made and the method of computing the same. No comment from the state regarding Regulation X meeting this compliance. |
| Interest / Vt. Stat. Ann. tit. 9, §41a(b) | Usury Limits (Subordinate Liens) | The interest rate for a loan or extension of credit secured by a subordinate lien against real estate may not exceed 18% per annum. All lien documents must include a power of sale. |