The Vermont Banking Division (Division) adopted rules amending commitment letter requirements with respect to mortgage loans. Per the adopted rules, the Division: amended the content that must be set forth in a commitment letter; revised the timing of a commitment letter (must now be delivered at least 3 business days prior to closing rather than 24 hours prior to closing); clarified requirements with respect to a borrower’s waiver or modification of the 3 business day waiting period, in the event of a personal financial emergency; and now permits lenders to provide a short form of the commitment letter when the lender is required to issue a Closing Disclosure pursuant to the Federal Truth-in-Lending Act. The Division also added several definitions, including definitions for “residential real estate” and “dwelling.” Under the new definitions, the Division’s commitment letter requirements apply to 1-to 4-family property located in Vermont (including an individual condominium unit, cooperative unit, mobile home and trailer, if used as a residence). The bill becomes effective October 1, 2018.
See Vermont State Legislature website for the full text of the Statutes:
http://www.dfr.vermont.gov/sites/default/files/dfr-regulation-banking-b-2018-02-commitment-letter.pdf
