45-737 Licensee; duties. - Nebraska Statutes

45-737. Licensee; duties.Alicensee shall:(1) Disburse required funds paid by the borrower and held in escrowfor the payment of insurance payments no later than the date upon which thepremium is due under the insurance policy;(2) Disburse funds paid by the borrower and held in escrow for the paymentof real estate taxes prior to the time such real estate taxes become delinquent;(3) Pay any penalty incurred by the borrower because of the failureof the licensee to make the payments required in subdivisions (1) and (2)of this section unless the licensee establishes that the failure to timelymake the payments was due solely to the fact that the borrower was sent awritten notice of the amount due more than fifteen calendar days before thedue date to the borrower's last-known address and failed to timely remit theamount due to the licensee;(4) At least annually perform a complete escrow analysis. If there isa change in the amount of the periodic payments, the licensee shall mail writtennotice of such change to the borrower at least twenty calendar days beforethe effective date of the change in payment. The following information shallbe provided to the borrower, without charge, in one or more reports, at leastannually:(a) The name and address of the licensee;(b) The name and address of the borrower;(c) A summary of the escrow account activity during the year which includesall of the following:(i) The balance of the escrow account at the beginning of the year;(ii) The aggregate amount of deposits to the escrow account during theyear; and(iii) The aggregate amount of withdrawals from the escrow account foreach of the following categories:(A) Payments applied to loan principal;(B) Payments applied to interest;(C) Payments applied to real estate taxes;(D) Payments for real property insurance premiums; and(E) All other withdrawals; and(d) A summary of loan principal for the year as follows:(i) The amount of principal outstanding at the beginning of the year;(ii) The aggregate amount of payments applied to principal during theyear; and(iii) The amount of principal outstanding at the end of the year;(5) Establish and maintain a toll-free telephone number or accept collecttelephone calls to respond to inquiries from borrowers, if the licensee servicesresidential mortgage loans. If a licensee ceases to service residential mortgageloans, it shall continue to maintain a toll-free telephone number or acceptcollect telephone calls to respond to inquiries from borrowers for a periodof twelve months after the date the licensee ceased to service residentialmortgage loans. A telephonic messaging service which does not permit the borroweran option of personal contact with an employee, agent, or contractor of thelicensee shall not satisfy the conditions of this section. Each day such licenseefails to comply with this subdivision shall constitute a separate violationof the Residential Mortgage Licensing Act;(6) Answer in writing, within ten business days after receipt, any writtenrequest for payoff information received from a borrower or a borrower's designatedrepresentative. This service shall be provided without charge to the borrower,except that when such information is provided upon request within sixty daysafter the fulfillment of a previous request, a processing fee of up to tendollars may be charged;(7) Execute and deliver a release of mortgage pursuant to the provisionsof section 76-252 or, in the case of a trust deed, execute and deliver a reconveyancepursuant to the provisions of section 76-1014.01;(8) Maintain a copy of all documents and records relating to each residentialmortgage loan and application for a residential mortgage loan, including,but not limited to, loan applications, federal Truth in Lending Act statements,good faith estimates, appraisals, notes, rights of rescission, and mortgagesor trust deeds for a period of two years after the date the residential mortgageloan is funded or the loan application is denied or withdrawn;(9) Notify the director in writing within three business days afterthe occurrence of any of the following:(a) The filing of a voluntary petition in bankruptcy by the licensee or notice of a filing of aninvoluntary petition in bankruptcy againstthe licensee;(b) The licensee has lost the ability to fund a loan or loans afterit had made a loan commitment or commitments and approved a loan applicationor applications;(c) Any other state or jurisdiction has invoked suspension or revocationprocedures against the licensee;(d) The filing of a criminal indictment or information against the licenseeor any of its officers, directors, shareholders, partners, members, employees,or agents; or(e) The licensee or any of the licensee's officers, directors, shareholders,partners, members, employees, or agents was convicted of, pleaded guilty to,or was found guilty after a plea of nolo contendere to (i) a misdemeanor understate or federal law which involves dishonesty or fraud or which involvesany aspect of the mortgage banking business, depository institution business,or installment loan company business or (ii) any felony under state or federallaw; and(10) Notify the director in writing or through an electronic methodas prescribed by the director within thirty days after the occurrence of a material development other than as describedin subdivision (9) of this section, including, but not limited to, anyof the following:(a) Business reorganization;(b) A change of name, trade name, doing business as designation, ormain office address;(c) The establishment of a branch office. Notice of such establishmentshall be on a form prescribed by the departmentand accompanied by a fee of seventy-five dollars for each branch office; or(d) The closing of a branch office. SourceLaws 1989, LB 272, § 14; Laws 1994, LB 1275, § 4; Laws 1995, LB 163, § 6; Laws 1995, LB 396, § 1; Laws 1996, LB 1053, § 11; Laws 2003, LB 218, § 8; Laws 2005, LB 533, § 55; Laws 2007, LB124, § 46; R.S.Supp.,2008, § 45-711; Laws 2009, LB328, § 22; Laws 2010, LB892, § 14.