WILLIAM DONALD SCHAEFER, Governor Ch. 728

(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] A LENDER MAY NOT REQUIRE AS A CONDITION OF SETTLEMENT
THAT A BORROWER EMPLOYE A PARTICULAR TITLE INSURANCE SETTLEMENT
OR ESCROW COMPANY, OR TITLE ATTORNEY IN CONNECTION WITH A LOAN
DESCRIBED IN SUBSECTION (A) OF THIS SECTION.

(C) (1) EXCEPT AS OTHERWISE AGREED UPON BY THE PARTIES, A
LENDER MAY NOT REQUIRE AS A CONDITION OF SETTLEMENT THAT A
BORROWER EMPLOY A PARTICULAR ATTORNEY OR TITLE INSURANCE COMPANY
TO PERFORM A TITLE SEARCH, EXAMINATION OF TITLE, OR CLOSING IF:

(I)  THE BORROWER NOTIFIES THE LENDER, WITHIN 7
DAYS AFTER APPLICATION FOR THE LOAN, OF THE NAME AND BUSINESS
ADDRESS OF THE BORROWER'S CHOICE OF ATTORNEY OR TITLE INSURANCE
COMPANY TO PERFORM THE TITLE SEARCH, EXAMINATION OF TITLE, OR
CLOSING; AND

(II)  THE LENDER DOES NOT REJECT THE BORROWER'S
CHOICE OF ATTORNEY OR TITLE INSURANCE COMPANY FOR GOOD CAUSE
WITHIN 7 DAYS AFTER THE RECEIPT OF THE NOTICE UNDER ITEM (I) OF
THIS PARAGRAPH.

(2) SUBJECT TO THE REQUIREMENTS OF SUBSECTION (B) OF
THIS SECTION, THIS SUBSECTION MAY NOT BE CONSTRUED TO PROHIBIT A
LENDER FROM REQUIRING A BORROWER TO PAY FOR:

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