Vermont Statutes Title 8 Sec. 2901

Terms Used In Vermont Statutes Title 8 Sec. 2901

Loan: means a residential mortgage loan. See
Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See
Servicing: means receiving a scheduled periodic payment from a borrower pursuant to the terms of a loan, including amounts for escrow accounts, and making the payments to the owner of the loan or other third party of principal and interest and other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the servicing loan document or servicing contract. See
State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See

§ 2901. License required

(a) No person shall act as a third party loan servicer, directly or indirectly, for a loan to a Vermont borrower without first obtaining a license under this chapter from the Commissioner.

(b) No license shall be required of:

(1) a depository institution;

(2) a lender licensed under chapter 73 of this title that retains the servicing rights on a loan originally closed in the lender’s name and subsequently sold in whole or in part to a third party, provided that the provisions of sections 2916 (segregated accounts) and 2922 (prohibited acts and practices) of this title shall apply to such lender;

(3) a debt adjuster licensed in this State;

(4) an attorney licensed in this State when collecting a debt on behalf of a client; or

(5) bona fide nonprofit organizations, exempt from taxation under Section 501(c) of the Internal Revenue Code, that are approved by the Department of Housing and Urban Development as housing counseling agencies, that have a physical location in Vermont, and that lend state or federal funds.

Previous section

Next section

Chapter 85 Contents