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2009 SESSION

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HB 1776 Mortgage Lender and Broker Act; broker duties and liability. 

Introduced by: Jennifer L. McClellan | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED HOUSE:

Mortgage Lender and Broker Act; broker duties and liability. Prohibits a mortgage broker from failing to use reasonable skill, care, and diligence in exercising the broker's duty, which is created hereby, to make reasonable efforts to secure a mortgage loan that is in the best interests of the applicant, considering the applicant's circumstances and loan characteristics. A borrower who suffers a loss as a result of a breach of such duty may bring an action to recover actual damages. SB 1020 is identical.

SUMMARY AS INTRODUCED:

Mortgage Lender and Broker Act; broker duties and liability.  Imposes upon mortgage brokers the duties to (i) act in the borrower’s best interest and in the utmost good faith toward the borrower and not to compromise a borrower’s right or interest in favor of another’s right or interest, including a right or interest of the mortgage broker; (ii) make reasonable efforts to secure a loan that is in the best interests of the borrower considering borrower circumstances and loan characteristics, including the product type, rates, charges, and repayment terms of the loan; and (iii) use reasonable skill, care, and diligence. The measure authorizes a borrower who has suffered a loss as a result of any violation of the Mortgage Lender and Broker Act to bring an action to recover actual damages, attorney fees, and court costs. If the violation was willful, the damages may be increased up to treble the amount of damages sustained.