{"data":{"id":"us-dc/d.c.-code-26-1113","jurisdiction":"us-dc","citation":"D.C. Code § 26-1113","heading":"Required loan disclosures.","body":"(a)\n(1)\nA licensee who offers to make or procure a loan secured by a first or subordinate mortgage or deed of trust on a single to 4-family home shall provide the borrower with a financing agreement executed by the lender.\n(2)\nThe financing agreement shall provide:\n(A)\nThe term and principal amount of the loan;\n(B)\nAn explanation of the type of mortgage loan being offered;\n(C)\nThe rate of interest that will apply to the loan and, if the rate is subject to change, or is a variable rate, or is subject to final determination at a future date based on some objective standard, a specific statement of those facts;\n(D)\nThe points and all fees, if any, to be paid by the borrower or the seller, or both; and\n(E)\nThe term during which the financing agreement remains in effect.\n(3)\nIf all the provisions of the financing agreement are not subject to future determination, change, or alteration, the financing agreement shall constitute a final binding agreement between the parties as to the items covered by the financing agreement.\n\n(a-1)\n(1)\nWithin 3 business days of an application for a non-conventional mortgage loan, the licensee shall provide to the borrower the written disclosures executed by the lender that are required under this section.\n(2)\nNo non-conventional mortgage loan shall be consummated unless the borrower has signed the disclosures required under this section and returned the disclosures to the mortgage lender.\n(3)\n“Borrower(s) and date.”\n(4)\n\n        \n      \n(5)\nThe Commissioner may prescribe, by rule, a different form for the written disclosures. The proposed rules shall be transmitted to the Council for a 60-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules by resolution within the 60-day review period, the proposed rules shall be deemed approved.\n(6)\n“Monthly condominium/co-operative/homeowner association fees: means the monthly fees that must be paid by the borrower if the borrower’s property is a condominium, co-operative, or subject to a homeowner association. These fees usually are collected on a monthly basis. Failure to pay these fees can result in a lawsuit against the borrower by the condominium, co-operative, or homeowner association. As with property taxes and homeowners’ insurance, these fees are likely to increase over time.“\n(7)\nThe Commissioner may prescribe, by rule, additional terms, definitions, and explanations. The proposed rules shall be transmitted to the Council for a 60-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules by resolution within the 60-day review period, the proposed rules shall be deemed approved.\n(8)\nThe information pursuant to this section shall be given to the borrower in a prominent form, separate from other disclosures, in either electronic or physical form and:\n(A)\nIn a 12-point font;\n(B)\nIn plain English or in the language of the mortgage lender’s presentation to the borrower; and\n(C)\nIf given to the borrower on a physical piece of paper, shall be printed on a red piece of paper measuring 8.5 inches by 11 inches.\n(9)\nWithin 5 business days of receiving the information pursuant to this section, the borrower may cancel the application for a mortgage loan with no loss of any security deposit or any other funds applied to guarantee an interest rate, not including reasonable fees incurred to process the application. The borrower shall be notified of this right to cancel at the time the information pursuant to this section is provided.\n\n(b)\n(1)\nThe financing agreement executed by the lender shall be delivered to the borrower at least 72 hours before the time of settlement agreed to by the parties and shall include:\n(A)\nThe effective fixed interest rate or initial interest rate that will be applied to the loan; and\n(B)\nA restatement of all the remaining unchanged provisions of the financing agreement.\n(2)\nPrior to execution of the financing agreement, the borrower may waive in writing the 72-hour advance presentation requirement and accept the commitment at settlement only if compliance with the 72-hour requirement is shown by the lender to be infeasible.\n(3)\nA borrower aggrieved by any violation of this section shall be entitled to bring a civil suit for damages, including reasonable attorney’s fees, against the lender.","path":["Title 26. Banks and Other Financial Institutions.","Chapter 11. Mortgage Lenders and Brokers."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/26-1113","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"a9730d5f3a87e884afdac21c87f8cbe2f7642865f984f466c7041ef69a896fb3","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-26-1112","next":"us-dc/d.c.-code-26-1114"},"notice":"GroundRules: Original legal text. Not legal advice."}