HARRY HUGHES, Governor

2207

(B)  AT THE TIME OF WITHIN 3 DAYS AFTER THE APPLICATION FOR
A LOAN DESCRIBED IN SUBSECTION (A) OF THIS SECTION, OR EARLIER
UPON REQUEST, ANY LENDER THAT IMPOSES FEES ON BORROWERS FOR
SETTLEMENT SERVICES, OR DOCUMENT REVIEW SERVICES, PERFORMED BY A
LENDER-DESIGNATED ATTORNEY SHALL PROVIDE A PROSPECTIVE BORROWER
WITH A WRITTEN NOTICE STATING:

(1)  THE LENDER'S REQUIREMENTS CONCERNING SELECTION OF
AN ATTORNEY OR OTHER PERSON TO PERFORM SETTLEMENT SERVICES
RELATING TO THE PURCHASE OF THE REAL PROPERTY; AND

(2)  A GOOD FAITH ESTIMATE OF THE FEE OR FEES TO BE
CHARGED TO THE BORROWER.

(C)  IF NOTICE IS REQUIRED BY THIS SECTION, A COPY OF THE
NOTICE, SIGNED BY THE APPLICANT, SHALL ACCOMPANY ANY EXECUTED
APPLICATION FOR A LOAN.

12-120.

(A)  THIS SECTION APPLIES TO ANY LOAN TO BE SECURED BY
OWNER-OCCUPIED RESIDENTIAL REAL PROPERTY.

(B)  A LENDER MAY REQUIRE THE BORROWER TO PAY FOR SERVICES
RENDERED BY THE LENDER'S ATTORNEY IN CONNECTION WITH A LOAN
DESCRIBED IN SUBSECTION (A) OF THIS SECTION ONLY IF;

(1)  THE ATTORNEY'S FEE IS LIMITED TO LEGAL SERVICES
ATTRIBUTABLE TO PROCESSING AND CLOSING THE LOAN AND NOT TO
UNRELATED SERVICES PERFORMED BY THE ATTORNEY FOR THE LENDER;

(2)  THE AMOUNT OF THE ATTORNEY'S FEE, IF IN EXCESS OF
$100, IS SUPPORTED BY A STATEMENT, PROVIDED TO THE BORROWER AT OR
PRIOR TO SETTLEMENT, THAT:

(I)  DESCRIBES THE SERVICES PERFORMED;

(II)  SETS FORTH THE TIME SPENT BY THE ATTORNEY
AND THE HOURLY RATE OR OTHER BASIS FOR DETERMINING THE FEE;

(III)  STATES THAT THE LEGAL SERVICES ARE BEING
PERFORMED ON BEHALF OF THE LENDER AND NOT ON BEHALF OF THE
BORROWER; AND

(IV)  STATES THAT THE SERVICES ARE BEING PAID
FOR BY THE BORROWER;

(3)  THE AMOUNT OF THE ATTORNEY'S FEE IS REASONABLE ON
THE BASIS OF THE LEGAL SERVICES PERFORMED; AND

(4)  THE ATTORNEY'S FEE IS SEPARATELY ITEMIZED ON THE
LOAN SETTLEMENT SHEET AND IDENTIFIED AS A FEE TO THE LENDER'S
ATTORNEY.

12-121.