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Mortgage Broker Exclusivity Agreement for the United States

Mortgage Broker Exclusivity Agreement Template for United States

A legally binding agreement used in the United States that establishes an exclusive relationship between a mortgage broker and their client. The document outlines the terms under which the broker will act as the sole intermediary for securing mortgage financing, including compensation structures, service scope, and duration. It incorporates federal requirements under RESPA, TILA, and state-specific mortgage broker regulations, while ensuring compliance with consumer protection laws.

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What is a Mortgage Broker Exclusivity Agreement?

The Mortgage Broker Exclusivity Agreement is essential when establishing a dedicated relationship for mortgage brokerage services in the United States. This document is typically used when a client wants to work with a single broker to secure financing, ensuring focused attention and avoiding conflicts of interest. The agreement must comply with federal regulations including RESPA and TILA, as well as state-specific licensing requirements. It outlines the broker's obligations, compensation structure, exclusivity period, and termination conditions.

What sections should be included in a Mortgage Broker Exclusivity Agreement?

1. Parties: Identification of the mortgage broker and client

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including RESPA, TILA, and state-specific terminology

4. Scope of Services: Detailed description of mortgage broker services and compliance with federal/state regulations

5. Exclusivity Terms: Terms of exclusive arrangement between parties and duration

6. Compensation: Fee structure and payment terms in compliance with RESPA requirements

7. Term and Termination: Duration of agreement and termination conditions

8. Compliance: Obligations to comply with RESPA, TILA, SAFE Act, and state-specific requirements

9. Representations and Warranties: Statements regarding licensing, compliance, and legal status

10. Governing Law: Applicable state law and federal regulations governing the agreement

What sections are optional to include in a Mortgage Broker Exclusivity Agreement?

1. Performance Metrics: Specific targets or KPIs, used when performance-based conditions apply

2. Territory Restrictions: Geographic limitations, used when broker services are limited to specific areas

3. Training Requirements: Specific training obligations, used when required by state law or agreement

4. Marketing Restrictions: Specific provisions regarding advertising and promotion, used when parties want to control marketing activities

What schedules should be included in a Mortgage Broker Exclusivity Agreement?

1. Schedule A - Fee Schedule: Detailed breakdown of all applicable fees and charges in compliance with RESPA

2. Schedule B - Service Level Agreement: Specific performance standards and response times

3. Schedule C - Required Disclosures: State and federal mandatory disclosures including TILA and RESPA requirements

4. Schedule D - Broker Licenses: Copies of relevant licenses and certifications required under SAFE Act and state law

5. Schedule E - Compliance Checklist: Checklist of regulatory requirements and compliance obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Clauses




























Industries

RESPA (Real Estate Settlement Procedures Act): Federal law that regulates real estate settlement services, requires disclosure of mortgage broker fees, and prohibits kickbacks and referral fees in real estate transactions

TILA (Truth in Lending Act): Federal legislation requiring disclosure of credit terms, regulating advertising practices, and ensuring transparent fee structures in lending

SAFE Act: Federal law establishing requirements for mortgage broker licensing and professional standards compliance

ECOA (Equal Credit Opportunity Act): Federal law prohibiting discrimination in lending practices and ensuring fair treatment of borrowers

Fair Housing Act: Federal legislation preventing discrimination in housing-related transactions and mortgage services

State Licensing Requirements: State-specific regulations governing mortgage broker licensing, including educational requirements and mandatory disclosures

State Consumer Protection Laws: State-level legislation providing additional disclosure requirements and anti-fraud provisions for consumer protection in mortgage transactions

State Contract Laws: State-specific requirements for valid contracts, including statute of frauds and consideration requirements

CFPB Regulations: Consumer Financial Protection Bureau regulations governing mortgage broker practices and consumer protection in financial services

FTC Guidelines: Federal Trade Commission guidelines regarding fair business practices and consumer protection in mortgage brokerage

State Mortgage Broker Regulations: Specific state-level rules governing mortgage broker conduct, operations, and compliance requirements

Anti-trust Laws: Federal and state regulations governing competition and exclusivity agreements in mortgage brokerage services

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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