Section 384:16-f Residential Mortgage Loan Application Fee. - New Hampshire Statutes

   I. This section shall apply only in the event that the bank commissioner has made a determination that a lender has employed procedures in the processing of a residential mortgage loan which are detrimental to the best interests of the applicant.
   II. Any bank or any company which is in the business of or customarily makes loans for the purpose of financing the acquisition of real property as defined in RSA 397-A:1, XXI, and which accepts a fee with a residential mortgage loan application for the purpose of processing and approving such application, shall determine if the applicant possesses sufficient income, credit, and employment to meet underwriting guidelines existing at the time such application is made, to qualify for the loan amount requested in the application.
   III. If the bank, person or entity determines that a residential mortgage loan applicant does not possess sufficient income, credit and employment to qualify for the requested loan amount under existing underwriting guidelines, it shall then obtain written authorization of the applicant prior to expending any additional amount of the applicant's funds for further third party services. Before obtaining such authorization it shall provide the applicant with a written disclosure describing the circumstances and procedures under which a refund of any or all fees of the applicant may be obtained.
   IV. If an application is disqualified or rejected before all services necessary for processing or approving such application have been performed, the bank or company shall, within 30 days of the disqualification or rejection of the application, return to the applicant the unexpended portion of such fee.

Source. 1993, 110:1. 2005, 255:45, eff. Sept. 12, 2005.