Alabama § 5-25-12 - Disclosure by Licensee; Prohibited Activities.
Full text of Alabama Code of Alabama § 5-25-12 — Disclosure by Licensee; Prohibited Activities., with citation guidance and answers to common questions.
§ 5-25-12. Disclosure by Licensee; Prohibited Activities.
(a) Licensees shall:
(1) Prior to the collection of a mortgage broker fee from a borrower, disclose to the borrower in writing the nature of the mortgage broker’s relationship to the borrower and the method by which the mortgage broker will be compensated for services.
(2) Comply with applicable federal and state laws, rules, and regulations.
(b) Licensees shall not:
(1) Intentionally misrepresent or conceal a material fact, term, or condition of the transaction to which he or she is a party, pertinent to an application for a mortgage loan or a borrower.
(2) Fail to use due diligence and make reasonable efforts to procure a mortgage loan on behalf of the borrower.
(3) Fail to disburse funds in accordance with a written commitment to make a mortgage loan.
(4) Delay closing of a mortgage loan for the purpose of increasing interest rate, costs, fees, or other charges payable by the borrower.
(5) Collect any mortgage broker fees before a conditional commitment is obtained from the lender by the mortgage broker.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 5-25-12
What does Code of Alabama § 5-25-12 cover?
Section 5-25-12 ("Disclosure by Licensee; Prohibited Activities.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 5-25-12?
A common citation format is "Code of Alabama § 5-25-12" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 5-25-12 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.