GENERAL INFORMATION 1st Mortgage ADDITIONAL LENDER FEES "Application fees," instead of Points/Origination Fee are not limited under 26-3113. The State of Idaho has indicated in past audits with other institutions that their definition of reasonable fees under 26-3113 is limited to 2% for Points/Origination Fee. In addition, it would be a best practice to roll any other miscellaneous fee (i.e., underwriting, processing) into the "Application fee." ADVERTISING False or misleading advertising is prohibited under the Idaho Consumer Protection Act (Idaho Code 48-601 et seq.). APPLICATION FEE "Application fees," instead of Points/Origination Fee are not limited under 26-3113. The State of Idaho has indicated in past audits with other institutions that their definition of reasonable fees under 26-3113 is limited to 2% for Points/Origination Fee. In addition, it would be a best practice to roll any other miscellaneous fee (i.e., underwriting, processing) into the "Application fee." APPRAISAL FEE Allowed (RMPA 26-3113) BROKER FEES Allowed (RMPA 26-3113) CLOSING COST TO 3RD PARTIES Allowed (loan cancellation fee may be collected at any time prior to closing or after closing) (RMPA 26-3113) CREDIT REPORT FEE Allowed (RMPA 26-3113) DISCOUNT POINTS Not regulated LATE CHARGE FEE Allowed Not regulated (Platt Part 2-23 6/03) MAXIMUM APR No maximum (Idaho Code 28-49-105) MAXIMUM INTEREST RATE No maximum (Idaho Code 28-49-105) ORIGINATION Limited to 2% PREPAYMENT PENALTIES Allowed Not regulated If a prepayment penalty is a condition of the loan, that fact must be separately disclosed to the borrower and accepted in writing (IDAPA 12.01.10.050) PROMISSORY NOTE Standard Fannie Mae/Freddie Mac state-specific First Mortgage Note.
GENERAL INFORMATION 1st Mortgage REBATE OF UNEARNED FINANCE CHARGES Not applicable RECORD RETENTION Five years after making the final entry on the loan (Idaho Code 26-3111(2). REQUIRED DOCUMENT An Idaho Prepayment Penalty Disclosure is required for all loans where a prepayment penalty is a condition of the loan. SIGNATURES In the event a spouse is not going on the loan, that spouse would need to sign the Security Instrument, Notice of Right to Cancel, Section 32 and Truth in Lending disclosure. WET SETTLEMENT Funds must be disbursed on the first business day after the rescission period, and must be disbursed with good funds (i.e.: wire transfer, cashiers check, etc.) (Idaho Department of Insurance: Amended Regulation No. 25, Rule 25,5.)
GENERAL PRACTICES 1st Mortgage MARITAL DESIGNATION Usually present on the Security Instrument. NOTARY Embosser or inked rubber-stamp seal. PROPERTY TAX DUE DATES Taxes are paid annually, due in November and considered delinquent December 20th. They can also be paid in two installments. The first installment due December, the second installment due in June. RIGHTS AND INTERESTS Community Property TYPE OF CONVEYANCE Warranty Deed TYPE OF ENCUMBRANCE Mortgage or Deed of Trust
BROKER INFORMATION 1st Mortgage ADVERTISING The Consumer Protection Act prohibits false or deceptive advertisements about the nature and quality of services. [ID Code Section 48-603] Deceptive advertising includes the following: Making a misleading or false statement of fact or representation in an advertisement; Engaging in bait advertising or misrepresenting, directly or indirectly, the mortgage loan terms, charges, or conditions; Advertising without conspicuously and clearly disclosing the licensee s business name; Advertising an address at which the licensee conducts no mortgage brokering or banking activities. [IDAPA Section 12.01.10.040] BROKER FEES Allowed (RMPA 26-3113) All advance fees must be placed ina trust account at a bank, savings and loan association or credit union located in Idaho. In addition, funds may only be withdrawn from trust accounts in accordance with the broker's written agreement with the borrower. LATE CHARGE FEE Allowed Not regulated (Platt Part 2-23 6/03)
ADDITIONAL LENDER FEES Intentionally left blank. IDAHO GENERAL INFORMATION 2nd Mortgage ADVERTISING False or misleading advertising is prohibited under the Idaho Consumer Protection Act. (Idaho Code 48-601 et seq.) APPLICATION FEE Allowed (RMPA 26-3113) Application fees, instead of Points/Origination Fee are not limited under 26-3113. The State of Idaho has indicated in past audits with other institutions that their definition of reasonable fees under 26-3113 is limited to 2% for Points/Origination Fee. APPRAISAL FEE Allowed (RMPA 26-3113) BROKER FEES Allowed CLOSING COST TO 3RD PARTIES Allowed (loan cancellation fee may be collected at any time prior to closing or after closing) (RMPA 26-3113) CREDIT REPORT FEE Allowed (RMPA 26-3113) DISCOUNT POINTS Not regulated. LATE CHARGE FEE 15 days and >of 5% or $5.00 (Idaho Credit Code 28-42-301) MAXIMUM APR No maximum (Idaho Credit Code 28-42-201) MAXIMUM INTEREST RATE No maximum (Idaho Credit Code 28-42-201) ORIGINATION Limited to 2%
GENERAL INFORMATION 2nd Mortgage PREPAYMENT PENALTIES Parties may agree to a prepayment charge if the loan is repaid in full during the first 3 years. For closed-end loans, prepayment not to exceed 6 months interest on average balance over prior 6 months. (Idaho Credit Code 28-42-306(2)(a)) For open-end loans the prepayment cannot exceed an amount equal to 6 months finance charge at the APR in effect of the time of prepayment calculated on the average of the average daily balances for the last 6 billing periods prior to the prepayment. If less than 6 months have passed since the inception of the account, the same calculation is used except the number of billing periods will be the number of billing periods the account has been opened.(idaho Credit Code 28-42-306(2)(b)) A prepayment charge may not be collected if the loan is refinanced with the same lender.(idaho Credit Code 28-42-306(3)) The Department of Finance has recommended providing a separate prepayment penalty disclosure. PROMISSORY NOTE Standard Fannie Mae/Freddie Mac state-specific Second Mortgage Note. REBATE OF UNEARNED FINANCE CHARGES Not applicable. RECORD RETENTION Intentionally left blank. REQUIRED DOCUMENT An Idaho Prepayment Penalty Disclosure is required for all loans where a prepayment penalty is a condition of the loan. SIGNATURES In the event a spouse is not going on the loan, that spouse would need to sign the security instrument, Notice of Right to Cancel, Section 32, and Truth in Lending disclosure. WET SETTLEMENT Funds must be disbursed on the first business day after the rescission period, and must be disbursed with good funds (i.e.: wire transfer, cashiers check, etc.). (Idaho Department of Insurance: Amended Regulation No. 25, Rule 25, 5.)
GENERAL PRACTICES 2nd Mortgage MARITAL DESIGNATION Usually present on the Security Instrument. NOTARY Embossed or inked rubber-stamp seal. PROPERTY TAX DUE DATES Taxes are paid annually, due in November and considered delinquent December 20th. They can also be paid in two installments. The first installment due December, the second installment due in June. RIGHTS AND INTERESTS Community Property TYPE OF CONVEYANCE Warranty Deed TYPE OF ENCUMBRANCE Mortgage or Deed of Trust
BROKER INFORMATION 2nd Mortgage ADVERTISING The Consumer Protection Act prohibits false or deceptive advertisements about the nature and quality of services. [ID Code Section 48-603] Deceptive advertising includes the following: Making a misleading or false statement of fact or representation in an advertisement; Engaging in bait advertising or misrepresenting, directly or indirectly, the mortgage loan terms, charges, or conditions; Advertising without conspicuously and clearly disclosing the licensee s business name; Advertising an address at which the licensee conducts no mortgage brokering or banking activities. [IDAPA Section 12.01.10.040] BROKER FEES Allowed (RMPA 26-3113) All advance fees must be placed ina trust account at a bank, savings and loan association or credit union located in Idaho. In addition, funds may only be withdrawn from trust accounts in accordance with the broker's written agreement with the borrower. LATE CHARGE FEE 15 days and >of 5% or $5.00 (Idaho Credit Code 28-42-301)
EARLY DISCLOSURES APPLICATION DISCLOSURE Lenders licensed under the Idaho Residential Mortgage Practices Act shall disclose to each borrower information about the licensee and the services that the licensee may and will provide to the borrower. This disclosure must be given upon receipt of a loan application and before receipt of any monies from a borrower (Rule 50.01; IDAPA 12.01.10.050.01). INTEREST RATE LOCK/FLOAT INFO DISCLOSURE INTEREST RATE LOCK-IN AGREEMENT PREPAYMENT PENALTY DISCLOSURE If an interest rate has not been locked at the time of application, a lender must disclose to the borrower that the interest rate and terms of the loan are subject to change. This disclosure must be given to the borrower at the same time the Federal TIL disclosure is delivered (Rule 50.03; IDAPA 12.01.10.050.03). CLICK HERE FOR SAMPLE Lender Specific. No VMP form. A written confirmation of the terms of a lock-in agreement must be delivered or sent first-class mail to a borrower for signature. This agreement needs to be signed by a borrower whenever a licensee enters into an interest rate lock-in agreement with a lender or represents to the borrower that the licensee has entered into a lock-in agreement (Rule 50.04; IDAPA 12.01.10.050.04). This form must be given to loan applicants whenever a prepayment penalty may be a condition of the residential mortgage loan offered to a borrower. The disclosure must be made separately and in writing to the borrower (Rule 50.05; IDAPA 12.01.10.050.05). Provider Lender Lender Lien Position