(a) Licensees shall:
(1) Prior to the collection of a mortgage broker fee from a borrower, disclose to the borrower in writing the nature of the mortgage broker's relationship to the borrower and the method by which the mortgage broker will be compensated for services.
(2) Comply with applicable federal and state laws, rules, and regulations.
(b) Licensees shall not:
(1) Intentionally misrepresent or conceal a material fact, term, or condition of the transaction to which he or she is a party, pertinent to an application for a mortgage loan or a borrower.
(2) Fail to use due diligence and make reasonable efforts to procure a mortgage loan on behalf of the borrower.
(3) Fail to disburse funds in accordance with a written commitment to make a mortgage loan.
(4) Delay closing of a mortgage loan for the purpose of increasing interest rate, costs, fees, or other charges payable by the borrower.
(5) Collect any mortgage broker fees before a conditional commitment is obtained from the lender by the mortgage broker.
Structure Code of Alabama
Title 5 - Banks and Financial Institutions.
Chapter 25 - Mortgage Brokers Licensing Act.
Section 5-25-3 - Persons Excluded.
Section 5-25-4 - License to Transact Business as a Mortgage Broker.
Section 5-25-5 - Application for License.
Section 5-25-6 - Issuance of License.
Section 5-25-7 - Expiration and Renewal.
Section 5-25-8 - License Requirements.
Section 5-25-9 - Maintenance and Examination of Records, Etc.
Section 5-25-10 - Annual Report.
Section 5-25-11 - Principal Place of Business; Branch Office.
Section 5-25-12 - Disclosure by Licensee; Prohibited Activities.
Section 5-25-13 - Rules and Regulations.
Section 5-25-14 - Denial, Suspension, or Revocation of License.
Section 5-25-16 - Enforcement and Penalties.