6.2-406 - (Effective October 1, 2010) Disclosure of terms of mortgage application. - Virginia Statutes

§ 6.2-406. (Effective October 1, 2010) Disclosure of terms of mortgageapplication.

A. Any lender making, or broker arranging, loans secured by a first mortgageor first deed of trust on owner occupied residential real estate consistingof one- to four-family dwelling units shall provide, at the time anapplication for such a loan is submitted by a loan applicant, to the loanapplicant a written statement that:

1. Describes when, if ever, the interest, points, and fees quoted will belocked in;

2. States that all the loan terms not legally locked in are subject to changeuntil settlement, which shall be initialed by the loan applicant and lenderor broker; and

3. Provides a good faith estimate of the processing time required for theloan. The estimate shall take into account the time needed for theperformance of any local government inspections or other functions necessaryto close the loan.

B. The requirements of subsection A shall not apply to any lender making 10or fewer loans secured by a first mortgage or first deed of trust on suchowner occupied residential real estate in any 12-month period.

(1988, c. 311, § 6.1-2.9:5; 2010, c. 794.)