61-2d-105 - Financing points and fees -- Restrictions.
61-2d-105. Financing points and fees -- Restrictions.
(1) A lender may not, in connection with the formation or consummation of a high-costmortgage, finance, directly or indirectly, any portion of the points, fees, or other charges payableto the lender or any third party in an amount in excess of 8% of the total loan amount, unless thefollowing additional disclosures are made to the borrower in conspicuous type size:
(a) "You are not required to complete this agreement merely because you have receivedthese disclosures or have signed the loan application."
(b) "If you obtain this loan, the lender will have a mortgage on your home. You couldlose your home or property, and any money you have put into it, if you do not meet yourobligations under this loan."
(c) "The timing and amount of payments on debts you already are carrying contribute tothe credit rating that is used to determine whether you may get a new loan and how much youwill pay for that new loan. You should not accept any advice to ignore or delay making anypayment on loans you already have, even if those loans will be paid off with the new loan."
(d) "You may get into serious financial difficulties if you use this loan to pay off olddebts and then run up other new debts."
(2) The disclosures required by this section shall be given to the borrower no less thanthree business days prior to consummation of the transaction.
(3) After providing the disclosure required by this section, a lender may not change theterms of the extension of credit if such changes make the disclosures inaccurate, unless newdisclosures are provided that meet the requirements of this section.
(4) A lender may provide new disclosures pursuant to Subsection (3) by telephone, if:
(a) the change is initiated by the borrower; and
(b) at the consummation of the transaction under which the credit is extended:
(i) the lender provides to the borrower the new disclosures in writing; and
(ii) the lender and borrower certify in writing that the new disclosures were provided bytelephone, at least three days prior to the date of consummation of the transaction.
Enacted by Chapter 252, 2004 General Session