PURPOSE: This rule establishes general practices guidelines for mortgage brokers in the areas of agreements and disclosures.

1. (1) Loan Brokerage Agreement. A loan brokerage agreement (agreement) is not required where licensee is a lender not engaged in the act of brokering. Where the licensee is acting as a broker, a written agreement shall be signed and dated by both the loan applicant (borrower) and licensee before the applicant signs an application or gives any consideration and—

   1. (A) Carry a clear and conspicuous statement that a copy is available to the borrower or the borrower’s attorney for review prior to signing;
   2. (B) Contain an explicit description of the services the licensee agrees to perform and include the federally required good faith estimate of costs. In the same area of the agreement shall be equally prominent language listing the circumstances which could materially affect the amounts indicated due to unforeseeable details;
   3. (C) Carry a clear and conspicuous statement about conditions under which the borrower is obligated to pay the licensee;
   4. (D) Truth-in-lending disclosures, transfer of servicing documents, good faith estimates of closing costs and all other documents required by state or federal law shall be provided and signed by the borrowers within three (3) days of the application;
   5. (E) Except for a rate-lock fee agreement in accordance with 4 CSR 140-30.110, the loan brokerage agreement shall be the only agreement between the borrower and licensee with respect to a single loan unless otherwise required by federal or state law; and
   6. (F) A copy signed by or on behalf of the licensee shall be given to the borrower.

2. (2) Loan Brokerage Disclosure Statement. Before the borrower signs an agreement or gives the licensee any consideration, the licensee shall give the borrower a written disclosure statement and shall obtain the customer’s signature on a duplicate of the disclosure statement near bold and conspicuous wording indicating that the customer has read and understands the statement. The statement shall prominently display the following information in the order presented:

   1. (A) The licensee is or is not making this loan;
   2. (B) Whether funding is provided by another entity, which may affect availability of funds;
   3. (C) The name under which the licensee has operated during the preceding ten (10) years and, if applicable, the name of any parent or affiliated company;
   4. (D) Whether the licensee is an individual, partnership, asso ciation, or corporation; and
   5. (E) If the licensee brokers loans to only one (1) entity, dis closure of that fact.
3. (3) Combined Forms. The loan brokerage agreement and the loan brokerage disclosure statement may be combined into one (1) form.

AUTHORITY: sections 443.847, 443.869(7) and 443.887, RSMo, Supp. 1996.* This rule originally filed as 4 CSR 140-30.080. Emergency rule filed Nov. 25, 1996, effective Dec. 5, 1996, expired June 2, 1997. Original rule filed Nov. 25, 1996, effective May 30, 1997. Moved to 20 CSR 1140-30.080, effective Aug. 28, 2006.

*Original authority: 443.847, RSMo 1994, amended 1995; 443.869(7), RSMo 1994, amended 1995; and 443.887, RSMo 1994, amended 1995.