§ 19-9-6. Lending institutions — Title attorney.
(a) Every lending institution that accepts an application for any residential mortgage loan or any commercial mortgage loan and requires that a title attorney search the title of the subject real estate, or requires a policy of title insurance, shall permit the prospective mortgagor to select a qualified title attorney or title insurance company of his, her, or its own choice to search the title of the subject real estate and to furnish title insurance. The lending institution shall not unreasonably disapprove a title insurance policy provided or paid for directly or indirectly by a borrower. The disapproval shall be deemed unreasonable if it is not based solely on reasonable standards uniformly applied, relating only to the extent of coverage required or the financial soundness of an insurer. The standards shall not discriminate against any particular insurer, nor shall the standards call for the disapproval of an insurance policy because the policy contained coverage in addition to that required. Acceptance of a title insurance company’s policy by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation shall be conclusive proof that the title insurance company meets the reasonable standards required by this section whether or not the borrower is applying for a residential or a commercial mortgage loan.
(b) In the event the prospective mortgagor does not select a qualified title attorney or title insurance company, the prospective mortgagor shall sign a waiver permitting the lending institution to select an attorney. If any lending institution violates this section, an aggrieved party may file a complaint in the superior court of the county in which the aggrieved party shall dwell or has his, her, or its principal place of business, or Providence county, if the superior court of that county shall not be in session, or if the aggrieved party is a nonresident or has no principal place of business in this state, of any other county as may be agreed upon by the parties to the petition, and serve upon the lending institution a petition for an order of the court for the enforcement of this section, and the petition may request and the court shall have jurisdiction to grant, after notice and hearing, an order:
(1) Granting injunctive relief to restrain the lending institution from engaging in the alleged or suspected violation;
(2) Awarding reasonable attorney’s fees, costs, and expenses of the action; and
(3) Granting any other relief, as may be required, until the person or lending institution complies with the requirements of this section.
History of Section.P.L. 1995, ch. 82, § 47.
Structure Rhode Island General Laws
Title 19 - Financial Institutions
Chapter 19-9 - Community Obligations and Banking Offenses
Section 19-9-1. - Definitions.
Section 19-9-2. - Escrow accounts — Interest.
Section 19-9-2.1. - Mortgage billing — Payment allocation.
Section 19-9-3. - Mortgages — Appraisal fees.
Section 19-9-3.1. - Mortgage loan appraisers — Relationship with lending institution.
Section 19-9-4. - Credit needs of local communities.
Section 19-9-5. - Mortgagor to be offered title insurance.
Section 19-9-6. - Lending institutions — Title attorney.
Section 19-9-7. - Attorney’s opinions.
Section 19-9-8. - Lending institutions — Negative amortization loans.
Section 19-9-9. - Mortgages issued — Payoffs.
Section 19-9-10. - Disbursement requirements — Purchase money loans — Dwellings.
Section 19-9-11. - Control of deposits by minors.
Section 19-9-12. - Trust deposits — Death of trustee.
Section 19-9-13. - Checks of trustees.
Section 19-9-14. - Deposits payable to survivor.
Section 19-9-14.1. - Uniform multiple-person accounts.
Section 19-9-15. - Pledge of passbook accounts.
Section 19-9-16. - Replacement of lost or destroyed passbook.
Section 19-9-17. - Charge-free savings accounts for minors.
Section 19-9-18. - Depositor identification.
Section 19-9-19. - Checks on consumer deposit accounts to show date account was opened.
Section 19-9-20. - Withdrawal from time deposit accounts.
Section 19-9-21. - Passbook savings accounts — Service charge prohibited.
Section 19-9-21.1. - Fee disclosure by banks, credit unions and other financial institutions.
Section 19-9-22. - Violations by officers and employees.
Section 19-9-24. - Fraudulent checks — Small amounts.
Section 19-9-25. - Fraudulent checks — Large amounts.
Section 19-9-26. - Prima facie evidence of intent to defraud — Prosecutions.
Section 19-9-27. - Check kiting.
Section 19-9-28. - False statement to obtain loan.
Section 19-9-29. - Bank fraud.
Section 19-9-30. - Injunctions against fraud.
Section 19-9-31. - False rumors as to condition of regulated institution.
Section 19-9-32. - Disclosure of arson conviction.
Section 19-9-33. - Severability.
Section 19-9-34. - Property insurance.
Section 19-9-35. - Consumer privacy in mortgage applications.