§ 12-119. Real property closing costs

   (a) Applicability of section. -- This section applies to any application for a loan, other than a commercial loan, to be secured by a first mortgage or first deed of trust on a borrower's primary residence.

(b) Required notice. -- Any lender that imposes fees on borrowers for settlement services, or document review services, performed by a lender-designated attorney, or who conditions settlement on the employment of a particular attorney or title insurance company under § 12-120(c) of this subtitle, shall provide a prospective borrower with a written notice stating:

   (1) The lender's requirements concerning selection of an attorney, title insurance company, or other person to perform settlement services relating to the purchase of the real property;

   (2) The borrower's ability to choose an attorney or title insurance company under § 12-120(c) of this subtitle; and

   (3) A good faith estimate of the fee or fees to be charged to the borrower.

(c) Time of notice; copy to accompany loan application. -- If notice is required by this section:

   (1) The notice shall be provided at the time of or within 3 days after the application for a loan, or earlier upon request; and

   (2) A copy of the notice, signed by the applicant, shall accompany any executed application for a loan.

HISTORY: 1986, ch. 628; 1990, ch. 339.