5 Del.C. §2113

Formerly Regulation No.: 5.2113.0004

Effective Date: November 12, 1999

1.0 Advertising

1.1 When a licensed mortgage loan broker advertises with respect to a mortgage loan, the advertisement shall clearly and conspicuously state that the broker is a licensed mortgage loan broker.

2.0 Written Agreement

2.1 The mortgage loan broker shall enter into a separate, signed, written agreement with the potential borrower, independent of the loan agreement. The terms of such agreement shall be disclosed to the potential borrower before the payment of any nonrefundable fee. A copy of the agreement shall be provided to the prospective borrower at the time he signs the agreement. The agreement shall contain, at a minimum:

2.1.1 The name of the mortgage loan broker;

2.1.2 The name of the prospective borrower;

2.1.3 The date of the agreement and the period for which it shall remain in effect;

2.1.4 A statement that the mortgage loan broker is not the credit provider;

2.1.5 A complete description of the services the mortgage loan broker undertakes to perform for the prospective borrower;

2.1.6 A specific statement of the circumstances under which the mortgage loan broker will be entitled to obtain or retain consideration from the party with whom the mortgage loan broker contracts;

2.1.7 An estimate of the costs of the broker's services which may be expressed as a dollar amount or range together with the maximum cost of services. Such maximum cost shall be expressed as follows: "In no event shall the cost of these services exceed __________." Such amounts shall include all compensation paid to the broker whether paid directly or indirectly;

2.1.8 A statement as to which fees are refundable and nonrefundable and under what circumstances a fee may be refundable; and

2.1.9 A statement that the borrower may be entitled to the refund of certain monies paid to the mortgage loan broker if he exercises his right to rescind under the Federal Truth-in-Lending Act.

See 3 DE Reg. 653 (11/01/99)