Section 26-C1117. WRITTEN COMMITMENTS, FINANCING AGREEMENTS, AND LOCK-IN AGREEMENTS

 

1117.1A written commitment shall include the following:

 

(a)If available, identification of the real property intended to secure the mortgage loan;

 

(b)The principal amount and maturity term of the mortgage loan;

 

(c)The interest rate and points for the mortgage loan if the commitment agreement is also a lock-in agreement, or a statement that the mortgage loan will be made at the mortgage lender’s prevailing rate and points for such loans at the time of closing or a specified number of days prior to closing;

 

(d)The amount of any commitment fee and the time within which the commitment fee must be paid;

 

(e)Disclosure as to whether funds will be escrowed and, if so, the purpose of the escrow;

 

(f)Disclosure as to whether private mortgage insurance or any other type of insurance is required;

 

(g)The length of the commitment period;

 

(h)A statement that if the mortgage loan is not closed, for any reason, within the commitment period, the mortgage lender is no longer obligated by the commitment agreement and any commitment fee paid shall be refunded to the borrower;

 

(i)A statement that the agreement is binding on both parties. The statement shall be disclosed in bold-faced type and at least a font size greater than the other language in the agreement;

 

(j)Any other reasonable terms and conditions that the mortgage lender elects to disclose in the commitment agreement; and

 

(k)The unique identifier of the mortgage loan originator, mortgage lender and mortgage broker.

 

1117.2A financing agreement containing the information required in section 14 of the Act may be submitted and executed by the mortgage lender and the borrower in lieu of a written commitment if the financing agreement is not subject to a future determination, change, or alteration, and the financing agreement meets the requirements of section 1117.1.

 

1117.3A written commitment executed by the mortgage lender and the borrower pursuant to section 15(a)(8) of the Act may be submitted in lieu of a financing agreement if the written commitment contains the information required in section 14 of the Act and the information required in section 1117.1.

 

1117.4The mortgage lender may enter into a lock-in agreement if the mortgage lender and each borrower execute the agreement, and the agreement contains the information required in section 1117.5.

 

1117.5A lock-in agreement shall include the following:

 

(a)The interest rate and points for the mortgage loan, and if the rate is an adjustable rate, disclosure of the initial rate, the index used for adjustments, limits on adjustments, and the adjustment period;

 

(b)The amount of any lock-in fee and the time within which the lock-in fee must be paid;

 

(c) The length of the lock-in period;

 

(d)A statement that if the mortgage loan is not closed within the lock-in period, for any reason, the mortgage lender is no longer obligated by the lock-in agreement and any lock-in fee paid by the borrower shall be refunded;

 

(e)A statement that any terms not locked-in by the lock-in agreement are subject to change until the mortgage loan is closed at settlement; and

 

(f)Any other reasonable terms and conditions of the lock-in agreement required by the mortgage lender.

 

1117.6A written commitment, financing agreement, or lock-in agreement executed pursuant to this section may be deemed voidable and unenforceable unless the agreement is signed by the borrower and contains the information required by this section.

 

source

Final Rulemaking published at 56 DCR 4356, 4370-4372 (June 5, 2009); as amended by Final Rulemaking published at 56 DCR 7457, 7459 (September 11, 2009).