WILLIAM DONALD SCHAEFER, Governor                           S.B. 329

(1)      CONSTRUCTION OF A NEW HOME; OR

(2)      REPAIRS, ALTERATIONS, OR OTHER WORK REQUIRED BY THE
CREDIT GRANTOR.

(D) THIS SECTION DOES NOT APPLY TO AN APPRAISAL OF THE VALUE OF
REAL PROPERTY BY A CREDIT GRANTOR OR TO FEES IMPOSED IN CONNECTION
WITH AN APPRAISAL.

12-1028.

(A)     THIS SECTION APPLIES ONLY TO A LOAN TO A CONSUMER BORROWER
SECURED BY A FIRST MORTGAGE OR FIRST DEED OF TRUST ON RESIDENTIAL REAL
PROPERTY USED AS THE CONSUMER BORROWER'S PRIMARY RESIDENCE.

(B)      A CREDIT GRANTOR MAY REQUIRE A CONSUMER BORROWER TO PAY
FOR SERVICES RENDERED BY THE CREDIT GRANTOR'S ATTORNEY ONLY IF THE

ATTORNEY'S FEE:

(1)      IS LIMITED TO LEGAL SERVICES ATTRIBUTABLE TO PROCESSING
AND CLOSING THE LOAN AND NOT TO UNRELATED SERVICES PERFORMED BY THE
ATTORNEY FOR THE CREDIT GRANTOR;

(2)      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 CREDIT GRANTOR AND NOT ON BEHALF OF THE CONSUMER
BORROWER; AND

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

(3)      IS REASONABLE ON THE BASIS OF THE LEGAL SERVICES
PERFORMED; AND

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

(C)      (1) A CREDIT GRANTOR MAY NOT REQUIRE AS A CONDITION OF
SETTLEMENT THAT A CONSUMER BORROWER EMPLOY A PARTICULAR ATTORNEY
OR TITLE INSURANCE COMPANY TO PERFORM A TITLE SEARCH, EXAMINATION OF
TITLE, OR CLOSING IF:

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