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Section 5. Segregated Accounts
(a) Any money collected from the prospective borrower by the Mortgage Broker must be
deposited in one or more accounts in a federally insured bank. The Mortgage Broker has
a fiduciary duty with respect to the funds in the account(s), and shall use the funds only
for purposes consistent with the contract required under 8 V.S.A. § 2219, consistent with
8 V.S.A. §2218, and consistent with this regulation. The account(s) must be segregated
from the personal accounts and operating or other business accounts of the Mortgage
Broker. The funds of prospective borrowers are not required to be segregated from the
funds of other prospective borrowers.
(b) Repayment of charges collected from the prospective borrower shall be governed by
the application, the contract, and applicable state and federal law.
Section 6. Quarterly Mortgage Call Reports
Each Mortgage Broker shall file a quarterly mortgage call report through the NMLS. The
quarterly mortgage call report shall be in such form, shall contain such information, and
shall be filed with such frequency as the NMLS may require.
Currently, the NMLS requires that quarterly mortgage call reports shall be filed within 45
days of the end of each calendar quarter:
Quarter 1 data (January 1 – March 31) is due by May 15;
Quarter 2 data (April 1 – June 30) is due by August 14;
Quarter 3 data (July 1 – September 30) is due by November 14;
Quarter 4 data (October 1 – December 31) is due by February 14.
Failure to file accurate and timely reports may result in the suspension, termination, or
refusal to renew the license and may result in the imposition of administrative fines and
penalties.
Section 7. Prohibited Mortgage Broker Activities
A Mortgage Broker may not act as the lender in connection with any loan closing
including, without limitation:
(a) A Mortgage Broker may not, in its own name, provide a prospective borrower
with a rate lock, extend a rate lock, or accept discount points or any other funds
from a prospective borrower for the purpose of buying down a rate of interest. A
Mortgage Broker may, however, forward a lender's rate lock to a prospective
borrower provided the rate lock is on behalf of the lender and is in the lender's
name.