Vermont Statutes Title 9. Commerce and Trade, § 103. Residential real estate loans

(a) For any fixed-rate loan, secured by a lien against real estate, used or to be used by the borrower as a residence, the rate of interest and other terms of the loan shall be for the duration of the loan at no more than the rate and terms established in the commitment letter for the loan by the lender, whether or not conditioned on future actions or events, and not the date of execution or closing of the transaction, unless specifically disclosed to and agreed to by the borrower on the date the commitment letter issues. The provisions of section 50 of this title shall apply to any violation of this section.

(b) For any variable-rate loan, secured by a lien against real estate used or to be used by the borrower as a residence, the lender shall disclose any introductory discount or similar reduction from the index or other measure fixing the rate or other terms of the loan at the time the loan commitment letter issues. Any subsequent adjustment above the initial amount discounted, not disclosed as provided in this subsection, shall have no legal force and effect.

(c) The Commissioner of Financial Regulation may adopt rules specifying the form, content, and timing of commitment letters required by this section. The Commissioner may order any person to make restitution to any person injured as a result of a violation of this subchapter and may impose an administrative penalty of up to $1,000.00 for a violation of this subchapter. The Commissioner may order any person to cease violating this subchapter.