HLS 10RS-120 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 154
BY REPRESENTATIVE SAM JONES
BANKS/BANKING: Allows the consumer to choose a closing attorney or title company
in certain real estate transactions
AN ACT1
To enact R.S. 6:1096(K), relative to residential mortgages; to permit a consumer to choose2
a title company or attorney; to provide for disclosure of a consumer's right to choose3
the title company or attorney; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 6:1096(K) is hereby enacted to read as follows: 6
ยง1096. Residential mortgage loans7
* * *8
K.(1) No residential mortgage lender or originator shall require, in a9
purchase for four or less units or single lots of residential properties, as a condition10
of the sale or loan, that a consumer choose a particular title company or attorney to11
act as the settlement agent for the mortgage. Upon approving a consumer for a12
mortgage in a purchase for four or less units or single lots of residential properties,13
the residential mortgage lender or originator shall provide written disclosure to the14
consumer that the consumer has the right to choose the title company or real estate15
attorney that will act as the settlement agent for the mortgage.16
(2) No person shall give and no person shall accept any fee, kickback, or17
thing of value pursuant to any agreement of understanding, oral or otherwise, that18
business incident to or a part of a real estate settlement service involving the19 HLS 10RS-120 ORIGINAL
HB NO. 154
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
purchase of four or less units or single lots of residential properties shall be referred1
to any person.2
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Sam Jones HB No. 154
Abstract: Allows a consumer to choose the title company or attorney to act as the
settlement agent for a mortgage in a purchase for four or less units or single lots of
residential properties. Prohibits a person from giving or accepting any fee, kickback,
or thing of value for the referral of a real estate settlement service.
Proposed law prohibits a residential mortgage lender or originator from requiring, in a
purchase for four or less units or single lots of residential properties, as a condition of the
sale or loan, that a buyer choose a particular title company or attorney to act as the
settlement agent for the mortgage.
Proposed law requires the residential mortgage lender or originator, upon approval of the
buyer's application for a mortgage, to provide written disclosure to the buyer that the buyer
has the right to choose the title company or real estate attorney that will act as the settlement
agent for the mortgage.
Proposed law prohibits any person from giving or accepting any fee, kickback, or thing of
value pursuant to any agreement of understanding, oral or otherwise, that business incident
to or a part of a real estate settlement service involving the purchase of four or less units or
single lots of residential properties shall be referred to any person.
(Adds R.S. 6:1096(K))