(9) Explanation of adjustable rate mortgage.
(10) Explanation of balloon payments.
(11) Explanation of credit options.
(12) Explanation of each item that appears on a good faith
estimate.
(13) Explanation of pre-payment penalties.
(c) Counseling session attendees must complete a personal income
and expense statement, as well as a balance sheet, on forms provided by the
Commissioner or the Director.
(d) Prior to signing a certificate of completion, approved credit counselors
shall privately discuss with each attendee that attendee's income and expense
statement and balance sheet, as well as the terms of any loan the attendee
currently has or may be contemplating, and provide a third party review to
establish the affordability of the loan.
(e) Counseling session attendees must be given a brochure that
contains information covered by the Mortgage Awareness Program.
(f) Any lender, prior to making a high risk home loan, shall inform the
borrower in writing of the right to participate in the Mortgage Awareness
Program.
(g) No lender shall offer less favorable loan terms to a borrower due to a
borrower's participation in the Mortgage Awareness Program.
(h) Except as prohibited elsewhere in this Section, the borrower may waive
participation in the program, provided that the waiver occurs no less than 2
business days after the day that the borrower receives the notice required by
subsection (f) of this Section and that the waiver is in writing in a form
approved by the Commissioner and the Director.
(Source: P.A. 93-561, eff. 1-1-04.)
|