The Vermont Department of Financial Regulation Banking Division adopts Regulation B-2018-02 (Supersedes and Replaces Regulation B-98-1), regarding the form, content and timing of residential real estate mortgage loan commitment letters.
Section 1. Authority, Scope and Purpose
This regulation is promulgated pursuant to Title 9 V.S.A. §103, and applies to every mortgage loan, as hereinafter defined. Title 9 V.S.A. §§103 (a) and (b) require that lenders issue commitment letters in connection with residential mortgage loans. Title 9 V.S.A. §103(c) grants the Commissioner the authority to promulgate rules specifying the form, content, and timing of commitment letters required by §§103 (a) and (b). The purposes of this regulation are to create the minimum framework within which commitment letters are to be issued in this state and to encourage complete and timely disclosure of information in the furtherance of consumer protection.
Section 6. Effective Date
This regulation is effective October 1, 2018. Lenders shall be in compliance with the provisions of this regulation commencing 90 days from the effective date hereof. (During the 90-day transition period, a lender may comply with either this regulation or prior Regulation B-98-1.) The commissioner may waive compliance with this regulation for a lender for additional 30 days, not to exceed 120 days from adoption, for good cause shown.
[Please read the final rule for complete details]