PURPOSE: This rule establishes requirements for certain practices by mortgage brokers in the areas of notices to joint borrowers, changes in loans in process, use of unauthorized brokers or lenders and the general requirement of good faith.

1. (1) Notice to Joint Borrowers. Any notice required by Chapter 4 CSR 140-30 shall be given to all joint applicants.

2. (2) Changes Affecting Loans in Process.

   1. (A) If an applicant does not qualify, the licensee shall immediately provide a written and, when possible, an oral explanation of any other program for which the applicant may qualify.
   2. (B) When any notice is received which materially affects a loan in process, the licensee shall immediately so notify the applicant in writing and, when possible, orally.
3. (3) Prohibition of Unauthorized Brokers or Lenders. No licensee shall knowingly use the services of any broker or lender not licensed or exempt.

4. (4) Good Faith Requirements.

   1. (A) Any disclosure or action required by the Act or regulations shall be undertaken in good faith.
   2. (B) A licensee shall not collect any charges unless able to demonstrate that if normal residential mortgage loan requirements are met, there is a reasonable likelihood that a loan commitment will be issued under conditions set forth.
   3. (C) A licensee shall process applications within the time specified in the contract.

AUTHORITY: sections 443.847, 443.869(7) and 443.887, RSMo Supp. 1996.* This rule originally filed as 4 CSR 140-30.100. 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 1140-30.100, 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.