Code of Virginia - Title 6.1 Banking And Finance - Section 6.1-2.9:5 Disclosure of terms of mortgage application

§ 6.1-2.9:5. Disclosure of terms of mortgage application

Any lender or broker making or arranging loans secured by first mortgages or deeds of trust on owner occupied residential real estate, consisting of one to four family dwelling units, other than a lender making ten or less loans in any twelve-month period, shall provide, at the time an application for such a loan is submitted by a potential borrower, to the applicant-borrower a written statement:

1. Describing when, if ever, the interest, points and fees quoted will be locked in;

2. To be initialed by the applicant-borrower and lender or broker, stating that all the loan terms not legally locked in are subject to change until settlement; and

3. Providing a good faith estimate of the processing time required for the loan. The estimate shall take into account the time needed for the performance of any local government inspections or other functions necessary to close the loan.

(1988, c. 311.)

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Last modified: April 2, 2009