09.03.06.12

.12 Expedition.

A. A licensee shall act expeditiously in processing and underwriting loan applications.

B. A licensee may not:

(1) Issue any agreement that locks in or sets an interest rate and points on the loan applied for, if the licensee knows that the time period established in the agreement after which the rate may change is not sufficient for the loan to be closed;

(2) Accept more applications than the licensee can reasonably expect to be processed and closed within established lock-in periods; or

(3) Delay the settlement of a loan with the specific intent to, and for the purpose of:

(a) Increasing any cost to the borrower, or

(b) Avoiding any legal obligation to the borrower.

C. Ordering Underwriting Documents-----Timing.

(1) This section applies only to:

(a) Purchase money mortgage loan applications; and

(b) Loan applications in which the licensee establishes a deadline for closing, after which the loan terms offered to the applicant may change.

(2) If a licensee fails to close a loan by the expiration date of a contract of sale supplied by the borrower, or by a deadline for closing established by the licensee, there is a rebuttable presumption that the licensee failed to process the loan expeditiously if the licensee fails to order:

(a) A credit report and property appraisal within 5 business days after initial application; or

(b) Within 5 business days, other reports from third parties needed for underwriting after discovery that the reports will be needed.

(3) This section does not apply to:

(a) Verification of employment; and

(b) Verification of deposits.