Vermont § 2219 - Contract required of mortgage broker

§ 2219. Contract required of mortgage broker

• (a) In advance of taking any fee or collecting any charges or at the time the prospective
  borrower submits a signed application, a written agreement in a form approved by the
  Commissioner shall be prepared by the mortgage broker and shall be signed by both
  the mortgage broker and the prospective borrower. The agreement shall set forth the
  particulars of the service to be performed by the mortgage broker, including specifics
  as to what shall constitute reasonable efforts on the part of the mortgage broker
  to perform the agreed upon services, shall state clearly that the mortgage broker
  shall represent the interests of the prospective borrower rather than those of any
  lender, and shall state the fee for the services. (b) A mortgage broker who acts as an independent contractor loan processor or an underwriter
  who performs loan processing or underwriting activities for a licensed or exempt mortgage
  broker or lender is not required to provide a mortgage broker agreement to the prospective
  borrower, provided: (1) the mortgage broker is acting as an independent contractor loan processor or underwriter
  as described in subsection 2201(g) of this chapter; (2) the mortgage broker’s activities are limited to loan processor or underwriting activities
  as described in subdivision 2200(6) of this chapter; (3) the mortgage broker is paid a fee solely by the licensed or exempt mortgage broker
  or lender, is not paid by the prospective borrower, and is not paid a commission based
  upon the dollar amount of the loan; and (4) if the mortgage broker is acting as an independent contractor loan processor or underwriter
  on behalf of a mortgage broker, such mortgage broker has already entered into a written
  mortgage broker agreement with the prospective borrower. (c) A mortgage broker that engages solely in lead generation and does not employ or sponsor
  any mortgage loan originators is not required to provide a mortgage broker agreement
  but must include clearly and conspicuously in all advertisements of loans and solicitation
  of leads, the following disclosure: THIS IS A LOAN SOLICITATION ONLY. [INSERT LICENSEE
  NAME] IS NOT THE LENDER. INFORMATION RECEIVED WILL BE SHARED WITH ONE OR MORE THIRD
  PARTIES IN CONNECTION WITH YOUR LOAN INQUIRY. THE LENDER MAY NOT BE SUBJECT TO ALL
  VERMONT LENDING LAWS. THE LENDER MAY BE SUBJECT TO FEDERAL LENDING LAWS. (Added 1995, No. 162 (Adj. Sess.), § 20, eff. Jan. 1, 1997; amended 2013, No. 29, § 6, eff. May 13, 2013; 2017, No. 22, § 24; 2019, No. 20, § 23.)