A borrower who offers borrowers the opportunity to enter into an agreement before the conclusion must inform borrowers in writing at the time of the offer: (1) an expiry date or a fixed term of the agreement, which cannot be less than the reasonably expected completion date or the length of time required to process, approve and conclude the loan; 2. If applicable, the circumstances in which the borrower may conclude at a lower interest rate or at lower interest rates, expressed in terms of agreements, 3) the measures necessary to process, approve and conclude the loan, including the measures required by the borrower and the lender; (4) that the agreement is enforceable by the borrower; and (5) the consideration required for the agreement. A person, including a lender, cannot advise, encourage or induce a borrower or third party to distort the information that is the subject of a credit application or to violate the terms of the agreement. Neither a mortgage lender nor a mortgage broker can announce mortgage terms, including interest and discount points, that were not available by the lender or broker on the date indicated in the listing or on the dates indicated. For the purposes of this section, the “advertisement” contains a list or example of mortgage terms based on information provided by the lender or broker, with or without a charge to the lender or broker, by a newspaper, and must also contain advertisements on the Internet. b) In addition to the sanction under point (a), a lender is liable to the borrower for any violation of this section or an excessive delay in processing a loan application that results in the expiry of the contract before the conclusion. A borrower or lender cannot maintain any contractual action unless the agreement is authorized in writing or by Division 4, if it establishes a counterparty, sets the terms and is signed by the borrower and the lender. An oral or written statement of current credit terms, including interest rates and the number of discount points, is not an offer or inducement from a lender to enter into an agreement. A written statement of the current terms of credit must be accompanied by a disclaimer stating that the declaration is not an offer to enter into the contract and that an offer can only be made under Subdivisions 3 and 4. (d) “interest or discount agreement,” a contract between a lender and a borrower under which the lender grants a loan at a specified interest rate or a certain number of discount points, or both, subject to the lender`s insurance and authorization requirements, and the borrower agrees to make a loan under these conditions. The maturity also includes an offer from a lender accepted by a borrower that the lender promises to guarantee or lock an interest rate or a certain number of discount points or both for a specified period of time.
(a) except in paragraph (c), a lender that violates this section or causes an excessive delay in processing a loan application beyond the expiry date of the agreement is liable to the borrower for a penalty of no more than the actual injury suffered by the borrower out of pocket, including the present value of interest charges increased beyond the normal term of the loan. or the specific implementation of the agreement. This paragraph applies to an agreement reached after January 1, 1987.