Code of Vermont Rules › Agency 21 - DEPARTMENT OF FINANCIAL REGULATION › Sub-Agency 010 - BANKING DIVISION › Chapter 010 - FORM, CONTENT AND TIMING OF RESIDENTIAL REAL ESTATE MORTGAGE LOAN COMMITMENT LETTERS › Section 21 010 010 - FORM, CONTENT AND TIMING OF RESIDENTIAL REAL ESTATE MORTGAGE LOAN COMMITMENT LETTERS

Current
				through June, 2024
Section
				1 Authority, Scope and Purpose
This regulation is promulgated pursuant to Title
				  9 V.S.A. §
											103, and applies to every mortgage loan, as
				  hereinafter defined. Title
				  9 V.S.A. §§
											103(a) and (b) require that
				  lenders issue commitment letters in connection with residential mortgage loans.
				  Title
				  9 V.S.A. §
											103(c) grants the
				  Commissioner the authority to promulgate rules specifying the form, content,
				  and timing of commitment letters required by §
										§ 103(a) and (b). The
				  purposes of this regulation are to create the minimum framework within which
				  commitment letters are to be issued in this state and to encourage complete and
				  timely disclosure of information in the furtherance of consumer
				  protection.
Section 2
				Definitions
For the purposes of this regulation, the following terms
				  shall be defined as set forth herein:
Borrower means a person or persons to whom credit is extended
				  in a transaction in which a lender takes a security interest against
				  residential real estate used or to be used by such person or persons as a
				  dwelling.
Closing means the time a borrower executes a note or a
				  mortgage, or becomes contractually obligated on a credit transaction, whichever
				  occurs sooner.
Dwelling means an owner occupied residential structure that
				  contains one to four units. The term includes an individual condominium unit,
				  cooperative unit, mobile home, and trailer, if it is used as a
				  residence.
Mortgage loan means any loan primarily for personal, family,
				  or household purposes that is secured by a first lien on owner occupied
				  residential real estate, including first and second homes.
NMLS means the Nationwide Multistate Licensing System and
				  Registry developed and maintained by the Conference of State Bank Supervisors
				  and the American Association of Residential Mortgage Regulators for the
				  licensing and registration of licensees, or any successor to the Nationwide
				  Multistate Licensing System and Registry.
Residential real estate means any real property located in
				  Vermont, upon which is constructed or intended to be constructed a
				  dwelling.
Reverse mortgage loan means a mortgage loan that:
(A) is a loan wherein the committed principal
				amount is secured by a mortgage on residential real estate owned by the
				borrower;
(B) is due upon sale of
				the property securing the loan or upon the death of the last surviving borrower
				or upon the borrower terminating use of the real property as a principal
				residence or upon the borrower's default;
(C) provides cash advances to the borrower
				based upon the equity or the value in the borrower's owner occupied principal
				residence; and
(D) requires no
				payment of principal or interest until the entire loan becomes due and
				payable.