What liability accrues to a lender that provides a legislatively mandated disclosure that includes false or otherwise inaccurate information?
Lenders should consult their legal counsel to obtain information about this matter. Sections 6 and 7 of the Act, respectively, require a “lender” to provide the “Borrowers Bill of Rights” and the “Consumer Caution and Home Ownership Counseling Notice” at the time a person applies for a mortgage loan. Is a mortgage “broker” that is not also a licensed lender required to provide the two disclosures? A. It is the opinion of the Commissioner, that taken in context, sections 6 and 7 of the Act apply to brokers of mortgage loans that are not otherwise lenders. However, brokers may wish to consult their legal counsel on this matter.
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