PRE-APPLICATION DISCLOSURE AND FEE AGREEMENT

In the following disclosure, I = applicant; you = mortgage broker.

You have advised me that you are authorized and prepared to assist me in securing mortgage financing. I understand that your services may include, but are not limited to the following:

  • Counseling on available mortgage products;
  • Counseling on general mortgage qualification procedures and requirements;
  • Counseling on my financial capabilities;
  • Assistance in obtaining information required to complete the mortgage application;
  • Assistance in processing the loan application and in meeting the conditions of the loan commitment.

I hereby agree to engage you for the purpose of advising me about financing and to provide the serviced described above. This agreement will continue until the earlier of declination of my loan request(s), the closing of my loan or my termination of your services.

I acknowledge that prior to paying any fees or completing any application(s), I was advised of the following:
  • Your services are advisory and administrative in nature;
  • You are not authorized to make mortgage loans or commitments;
  • You cannot guarantee acceptance into any particular loan program or specific loan terms or conditions;
  • You may be eligible to receive a lender-paid bonus (cash or non-cash) if my loan is placed with a particular lender, and you will notify me if this occurs.

BROKER FEE:

I understand that, as compensation for your services, you will be paid as checked below:

The lender will pay you a fee of __________% of the loan amount or $__________.
     The compensation you will receive from the lender for your services is included in the rate,      points, fees and terms of the loan as quoted by the lender in its commitment. The maximum      points paid, including premium pricing payable by the lender to you, shall not exceed      __________( ) points.
 The fee the lender will pay you is not known at this time but will be disclosed to me at the      time of lock-in or when the rate is set. The maximum points paid, including premium      pricing payable by the lender to you, shall not exceed __________( ) points.
 I will pay you, from the loan proceeds, a fee of __________% of the loan amount or     $__________. I authorize the lender's attorney to collect this fee from me at closing.
I will pay you directly, upon my signed acceptance of a commitment or at closing, a fee of     __________% o the loan amount or $__________.

In some cases, you may be paid all of your compensation by either the applicant or the lender. Alternatively, you may be paid a portion of your compensation by both the applicant and the lender. For example, in some cases, if the applicant would rather pay less up-front, they may be able to pay some or all of your compensation indirectly through a higher interest rate in which you will be paid directly by the lender.

MORTGAGE BROKER FEE ACKNOWLEDGEMENT

I acknowledge that this mortgage broker fee will be paid to you. I further acknowledge that there is no other mortgage broker fee agreement between us. I understand that I am required to pay the following fees at application:
  • Application Fee $__________
  • Property appraisal fee * $__________
  • Credit report fee * $__________


* The property appraisal and credit report fees are estimates of the actual cost of the services. Should the actual costs exceed the estimate, I understand that I will be billed and agree to pay the shortfall prior to or at closing.

BECAUSE THE FEES AND COSTS PAID BY ME AT APPLICATION REPRESENT ACTUAL COSTA INCURRED ON MY BEHALF BY TERRITORY MORTGAGE INC., THE FEES ARE NON-REFUNDABLE. TERRITORY MORTGAGE INC. WILL REFUND TO ME ANY AMOUNT BY WHICH THE GOOD FAITH ESTIMATED COSTS OF APPRAISAL OR CREDIT REPORT FEES EXCEED ACTUAL COSTS. HOWEVER, IF THE GOOD FAITH ESTIMATED COST IS INSUFFICIENT TO COVER THE ACTUAL COST, WE HEREBY AGREE TO REMIT TO TERRITORY MORTGAGE INC. THE DIFFERENCE.

The credit report and appraisal fees are non-refundable except for any amounts collected in excess of the actual cost will be refunded. If the credit report and appraisal have not been performed, the fees will be refunded in full.

PROCESSING FEE

Processing fee $N/A

PRE-PAYMENT PENALTIES

I understand that certain mortgage products impose a prepayment penalty on the borrower. You will disclose the amount of, or the formula for calculating the prepayment penalty, if any, as soon as you know them.

APPLICATION QUESTIONS

I understand that I may address questions or comments about my application at (585) 869-0222. If I live more than fifty (50) miles from the office at which my application is being processed, I may call you at (800) 379-5845.

PRIVATE MORTGAGE INSURANCE

I may terminate my mortgage loan guaranty insurance when the unpaid principal amount of the real estate loan represents 75% or less of the real estate's appraised value at the time the loan was made. However, if my mortgage loan is on a single family dwelling that is my primary residence, then my loan may be eligible under federal law for earlier termination of the mortgage loan guaranty insurance.

By signing below, I acknowledge receipt of a copy of this pre-application disclosure and broker fee agreement.


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Applicant Date



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Applicant

Registered Mortgage Broker / N.Y. State Banking Department
Loans are arranged through third party lenders

 

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