Louisiana § RS 9:3572.11 - Loan brokerage statement; disclosure statement required

§ RS 9:3572.11. Loan brokerage statement; disclosure statement required

A.(1)  Each application for a consumer or federally related mortgage loan in which a loan broker is involved shall be accompanied by a written "Loan Brokerage Agreement and Disclosure Statement" which shall be signed by all contracting parties.  A copy of the signed agreement shall be presented to the applicant at the time of signing.

(2)  The initial paragraph of the "Loan Brokerage Agreement and Disclosure Statement" shall be entitled in at least ten point bold-face capital letters "DISCLOSURE REQUIRED BY LOUISIANA LAW".  Under this title shall appear the statement in at least ten point type that "The state of Louisiana does not approve or disapprove any loan brokerage contract.  The information contained in this disclosure has not been verified by the state.  If you have any questions see an attorney before you sign a contract agreement."

B.  The "Loan Brokerage Agreement and Disclosure Statement" shall contain the following information:

(1)  The name of the loan broker; whether the loan broker is doing business as an individual, partnership, limited liability company, or corporation; the names under which the loan broker has done, is doing, or intends to do business; and the name of any parent or affiliated companies providing a settlement service.

(2)  Repealed by Acts 1999, No. 1160, §2.

(3)  The length of time the loan broker has conducted business as a  loan broker.

(4)  A full and detailed description of the actual services that the  loan broker undertakes to perform for the prospective borrower.

(5)  One of the following statements, whichever is appropriate:

(a)  "As required by Louisiana law, this  loan broker has secured a bond by ___________, a surety authorized to do business in this state.  A certified copy of this bond is filed with the commissioner of financial institutions.  Before signing a contract with this loan broker, you should check with the surety company to determine the bond's current status.", or

(b)  "As required by Louisiana law, this  loan broker has established a trust account (number of account) with (name/address of bank or savings institution).  Before signing a contract with this loan broker you should check with the bank or savings institution to determine the current status of the trust account."

Acts 1986, No. 729, §1; Acts 1997, No. 1419, §1; Acts 1999, No. 1160, §§1, 2.