| | |
the case of a refinancing or any other loan when a right of | | rescission applies, the lender shall cause, within one business day | | after the expiration of the rescission period required under the | | federal Truth-in-Lending Act, 15 United States Code, Section 1601, | | et seq. and the state truth-in-lending provisions, Title 9-A, | | article VIII, disbursement of loan funds to the settlement agent.__ | | The lender is not entitled to receive or charge interest on the | | loan until disbursement of loan funds and loan closing have | | occurred. |
|
| | | §525.__Duty of settlement agent |
|
| | | The settlement agent shall cause recordation of the deed, | | mortgage or other documents required to be recorded and shall | | cause disbursement of settlement proceeds within 2 business days | | of settlement. |
|
| | | A lender or settlement agent who violates any provision of | | this subchapter and causes actual damage to a consumer is subject | | to a civil action by the aggrieved consumer in which the consumer | | has the right to recover actual damages in an amount determined | | by the court or $5,000, whichever is greater, plus costs of the | | action together with reasonable attorney's fees. |
|
| | | With respect to lenders that are supervised financial | | organizations as that term is defined in Title 9-A, section 1- | | 301, subsection 38-A, a violation of this subchapter is deemed an | | anticompetitive and deceptive practice and the Superintendent of | | Banking may take appropriate action to ensure compliance with | | this subchapter.__With respect to all other supervised leaders, | | as that term is defined in Title 9-A, section 1-301, subsection | | 39, the Director of Consumer Credit Regulation may take such | | action. |
|
| | | This bill requires that mortgage lenders provide closing funds | | to settlement agents prior to or at the time of closing, to | | prevent further situations in which consumers in the State close | | on loans and then do not receive the funds. |
|
|
