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A. Before payment of any money by an investor in connection with a mortgage loan, a licensee shall provide to an investor that is not a financial institution, state or national bank, state or federal savings and loan association, state or federal savings bank, state or federal credit union, financial enterprise, licensed real estate broker or salesman, profit sharing or pension trust or insurance company:
1. An opinion from an independent source stating the value of the property subject to the mortgage loan being made or sold. The opinion shall state the value of the property as it exists on the date of the opinion.
2. A copy of the preliminary title report that states the condition of title and discloses any encumbrances, assessments and liens of record on the property securing the mortgage loan being made or sold.
3. A disclosure statement that includes the following information:
(a) The name and address of the fee owner of the property securing the mortgage loan being made or sold.
(b) Information relative to the ability of the borrower to meet the obligations of the mortgage loan.
(c) A legal description or address of the property securing the mortgage loan being made or sold.
(d) The existence of any improvements on the property or any utilities on or adjacent to the property that will serve the property.
(e) The terms and conditions of the mortgage loan being made or sold, including the principal balance owed and the status of principal and interest payments thereon.
(f) The terms and conditions of all liens on the property securing the mortgage loan being made or sold.
(g) A statement as to whether the mortgage broker is acting as principal or agent in the transaction.
(h) Any additional information prescribed by the deputy director.
B. After using the licensee's best efforts to verify all of the information required by this section, the licensee shall sign the statement attesting to the validity of the information to the best of the licensee's knowledge and belief. The licensee shall maintain a record of acknowledgment from the lender of the receipt of this information for not less than two years from the date of the mortgage loan closing.
Cite this article: FindLaw.com - Rhode Island General Laws Title 18. Fiduciaries § 18-7-17. Exemption of third person from liability - last updated January 01, 2019 | https://codes.findlaw.com/ri/title-18-fiduciaries/ri-gen-laws-sect-18-7-17/
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