House Bill 5294

To (1) prohibit mortgage brokers or lenders from advertising or representing that a loan or lock-in will be at a specific rate or with specific points when the broker or lender knew or should have known that the loan will not ultimately be made with those terms; (2) prohibit advertising certain loan characteristics such as interest rate and fees when such loans are not generally available to applicants at the time of advertisement; (3) require all mortgage loan commitments by lenders or notices of loan approvals by brokers to be made in writing and signed by the borrower at least five days in advance of the closing; (4) require lenders or brokers to provide a notice to consumers at the time of submission of a loan application that informs the borrower: (A) To compare rates and fees with other lenders; (B) to seek professional advice from an attorney, credit counselor or financial advisor; (C) to be aware that failure to pay a mortgage could result in the loss of the home and poor credit rating; (D) to be aware that applying for a loan does not commit the borrower to sign the loan; and (5) require lenders or brokers to provide a notice to consumers with the mortgage commitment or notice of loan approval that informs the borrower: (A) To review the terms of the agreement and be certain that the borrower can afford the mortgage; (B) to ask whether the mortgage has an adjustable rate and what the monthly payment would be if interest rates remain the same and if the maximum interest rate was charged; (C) to calculate how much the borrower will need to pay for insurance and property taxes as well as the monthly mortgage payment; (D) that the borrower will be paying these bills with net income and not the gross income listed on the application; and (E) that the lender is only committed to terms that are contained in a written agreement and that the interest rate, fees and other aspects of the loan may change.

In the House of Representatives

• BA

  Sponsor

l9n doesn't hold this bill's text yet.

In the House of Representatives Feb 16 – Feb 23

1. Feb 16Introduced and sent to Banking Committee
2. Feb 23Heard in Banking Committee