Arkansas Origination Reference Guide
- Kacey Olson (Unlicensed)
Owned by Kacey Olson (Unlicensed)
| Citation | Topic | Requirement |
Adverse Action Notice | In addition to requirements under ECOA, Arkansas requires the inclusion of the social security number in the notice, as applicable. | |
| Home Loan Protection Act / Ark. Code Ann. §23-53-104(k) | Borrower Counseling | A creditor may not make a high-cost home loan without first receiving certification from a third-party counselor approved by the Department of HUD, a state housing financing agency, or the regulatory agency that has jurisdiction over the creditor, that the borrower has received counseling on the advisability of the loan transaction. |
| Practice, Procedure, and Courts / Ark. Code Ann. §16-22-211(a) | Document Preparation Fee | It is unlawful for any corporation or voluntary association to render legal services of any kind. The Arkansas Supreme Court has held that a notary public engaged in the unauthorized practice of law by preparing deeds and mortgages for a fee. Creekmore v. Izard, 367 S.W.2d 419 (Ark. 1963). See also Ark. Op. Atty. Gen. No. 95-042 (March 20, 1995) (prohibiting a title company from preparing legal documents and charging a fee for such preparation). Therefore, mortgage loan companies and loan brokers are prohibited from preparing mortgages in Arkansas. |
| Reverse Mortgage Protection Act / Ark. Code Ann. §23-54-106 | Important Notice to Reverse Mortgage Applicant | No reverse mortgage loan application may be taken by a lender unless the loan applicant has received from the lender a plain language statement, in conspicuous 16-point type or larger, advising the prospective borrower about counseling prior to obtaining the reverse mortgage loan. |
| Fair Mortgage Lending Act / Ark. Code Ann. §23-39-510(b) | NMLS Unique Identifier | The unique identifier of a person soliciting or originating a mortgage loan must be clearly shown on all mortgage loan application forms, solicitations, advertisements, business cards, websites, and any other document or medium established by rule or order of the Commissioner. |
| Home Loan Protection Act / Ark. Code Ann. §23-53-103(6) | Notice of Right to Select Attorney | In order to exclude attorney fees from points and fee calculations for high-cost home loans. |
| Business and Commercial Law / Ark. Code Ann. §4-57-103(a) | Statement of Principal & Interest | Any seller, lender, or any other person, corporation, or legal entity extending credit in this state shall, upon written request of the borrower or debtor, furnish the borrower or debtor, at the time of extending credit or of making the sale, with a statement separately stating the principal and interest charged for any goods, property, or services sold to the borrower or debtor. |
| Fair Mortgage Lending Act / Ark. Code Ann. §23-39-513(10) | Tangible Net Benefit Worksheet | It is unlawful for a person to broker or make a refinancing of a residential mortgage loan when the refinancing charges additional points and fees, within a 12-month period after the original loan agreement was signed, unless the refinancing results in a reasonable, tangible net benefit to the borrower, considering all of the circumstances surrounding the refinancing. |