Nebraska Amends Loan Broker Agreement Disclosure Requirements
Effective on September 1, 2017, Nebraska amended its provisions on the manner and process that a loan broker agreement must be given.
Firstly, temporal requirements have been amended and relaxed to allow a broker more time to provide a written disclosure statement (disclosure). Previously, the disclosure must have been provided to the borrower 48 hours before the individual signed the loan broker agreement (agreement). However, the amendments will allow a broker to provide a disclosure any time before the individual signs the agreement.
Secondly, several minor text changes were made. These minor text changes do not change the requirement of the pertinent information that should be provided within the disclosure such as the broker’s contact information, the manner of capacity in which the business operates (i.e. partnership) and a ten point boldface capital lettered statement absolving the state of Nebraska from knowledge of this particular agreement.
Lastly, changes were made to the cancellation process. Previously, the borrower had the right to cancel a loan brokerage agreement for any reason within three business days after the date of signing. This has been amended and amplified to five days. Previous requirements dictating that the agreement be in writing, include a ten point lettered statement detailing the agreement and contact and descriptive information of the business, still hold. Also, as was previously required, the following message must be in the disclosure:
“You have five three business days in which you may cancel this agreement for any reason by mailing or delivering written notice to the loan broker. The five three business days shall expire on ________ (last date to mail or deliver notice), and notice of cancellation should be mailed to ________ (loan broker’s name and business street address). If you choose to mail your notice, it must be placed in the United States mail properly addressed, first-class postage prepaid, and postmarked before midnight of the above date. If you choose to deliver your notice to the loan broker directly, it must be delivered to the loan broker by the end of the normal business day on the above date. Within five business days after receipt of the notice of cancellation, the loan broker shall return to you all sums paid by you to the loan broker pursuant to this agreement.”
For your convenience, the following link has been provided for a full reading of the bill: http://nebraskalegislature.gov/FloorDocs/105/PDF/Intro/LB184.pdf