§ 34-23-6 - Disclosure requirements. - Rhode Island Statutes

SECTION 34-23-6

   § 34-23-6  Disclosure requirements. –In the event any brokerage fees, loan fees, points, finders' fees, originationfees, or any similar charges shall be imposed on any secured mortgage loan onreal estate containing thereon dwelling houses of not more than four (4)dwelling units, those charges shall not be subject to any refund in the eventthe underlying loan contract is prepaid in full and shall be disclosed inwriting to the applicant either by delivering such disclosure or by placing itin the mail to the loan applicant, not later than three (3) business days afterthe application is received. The disclosure, which may be a form of good faithestimate under the federal real estate settlement procedures act, shall containan itemization of such fees and charges. The applicant also concurrently shallbe given the following notice: "Notice regarding nonrefundability of loan fees:You have received a good faith estimate or other itemization of fees andcharges showing the loan fees and similar charges you are likely to pay toobtain this loan. As provided in § 34-23-6, none of these or other feesand charges will be refunded in the event the loan is prepaid in whole or inpart." The applicant shall sign an acknowledgement of receipt of suchdisclosure and notice.