6-907. Required disclosure to investors


A. Before payment of any money by an investor in connection with a mortgage loan, a
licensee shall provide to an investor that is not a financial institution, state or
national bank, state or federal savings and loan association, state or federal savings
bank, state or federal credit union, financial enterprise, licensed real estate broker or
salesman, profit sharing or pension trust or insurance company:


1. An opinion from an independent source stating the value of the property subject
to the mortgage loan being made or sold. The opinion shall state the value of the
property as it exists on the date of the opinion.


2. A copy of the preliminary title report that states the condition of title and
discloses any encumbrances, assessments and liens of record on the property securing the
mortgage loan being made or sold.


3. A disclosure statement which includes the following information:


(a) The name and address of the fee owner of the property securing the mortgage
loan being made or sold.


(b) Information relative to the ability of the borrower to meet the obligations of
the mortgage loan.


(c) A legal description or address of the property securing the mortgage loan being
made or sold.


(d) The existence of any improvements on the property or any utilities on or
adjacent to the property which will serve the property.


(e) The terms and conditions of the mortgage loan being made or sold, including the
principal balance owed and the status of principal and interest payments thereon.


(f) The terms and conditions of all liens on the property securing the mortgage
loan being made or sold.


(g) A statement as to whether the mortgage broker is acting as principal or agent
in the transaction.


(h) Any additional information prescribed by the superintendent.


B. After using his best efforts to verify all of the information required by this
section the licensee shall sign the statement attesting to the validity of the
information to the best of his knowledge and belief. The licensee shall maintain a record
of acknowledgment from the lender of the receipt of this information for not less than
two years from the date of the mortgage loan closing.