NMU's Compliance Database - Northern Michigan University

The University may maintain a preferred lender list so long as it is not used to deny or impede a borrower's choice of lenders, offers three or more lenders not affiliated with one another, and doesn't include lenders who have offered financial or other benefits to be included on the list. The University must disclose to borrowers the method and criteria used to select preferred lenders, and offer comparative information to borrowers about each lender's benefits. The University must include in its preferred lender materials a prominent statement that borrowers are not required to use any lender on the list, and may not delay award certification because a preferred lender is not used. The preferred lender list and associated information must be updated annually.

Sections 152 and 153 required disclosures when there are preferred lending arrangements.