-
(a)
-
(1) A licensee who offers to make or procure a loan secured by a first or subordinate mortgage on a single to four-family home to be occupied by the borrower shall provide the borrower with a financing agreement executed by the lender.
-
(2) The financing agreement shall provide:
-
(A) The term and principal amount of the loan;
-
(B) An explanation of the type of mortgage loan being offered;
-
(C) The rate of interest that will apply to the loan and, if the rate is subject to change, or is a variable rate, or is subject to final determination at a future date based on some objective standard, a specific statement of those facts; provided that loans under $100,000 shall comply with the territory’s usury laws.
-
(D) The points and all fees, if any, to be paid by the borrower or the seller, or both; and
-
(E) The term during which the financing agreement remains in effect.
-
-
(3) If all the provisions of the financing agreement are not subject to future determination, change, or alteration, the financing agreement shall constitute a final binding agreement between the parties as to the items covered by the financing agreement.
-
-
(b)
-
(1) The financing agreement executed by the lender must be delivered to the borrower at least 72 hours before the time of settlement agreed to by the parties and must include:
-
(A) The effective fixed interest rate or initial interest rate that will be applied to the loan; and
-
(B) A restatement of all the remaining unchanged provisions of the financing agreement.
-
-
(2) Prior to execution of the financing agreement, the borrower may waive in writing the 72-hour advance presentation requirement and accept the commitment at settlement only if compliance with the 72-hour requirement is shown by the lender to be infeasible.
-
(3) A borrower aggrieved by any violation of this section shall be entitled to bring a civil suit for damages, including reasonable attorney’s fees, against the lender.
-