All Disclosures Flashcards
Affiliated Business Arrangement Disclosure (ABA/AfBA), RESPA - Section 8
Informs borrower they don’t have to choose the referred affiliate, let’s them know the estimated costs, and shows a description of the business arrangement.
Due at time of referral.
Must be retained 5 years from settlement date.
Mortgage Servicing Disclosure Statement (MSDS), RESPA - Section 6
Informs borrower or likelihood that the loan will be transferred to a new servicer.
Due at application or within 3 CALENDAR days.
Must be retained 5 years from settlement date.
Good Faith Estimate (GFE), RESPA
Provides estimated settlement costs for open-end loans.
Due at application or within 3 business days if mailed.
Must be retained 3 years from settlement date.
Home Ownership Counseling Organizations List Disclosures, RESPA
All loans except reverse mortgages and timeshares.
Provides at least 10 homeownership counseling organizations in their area to get homeownership counseling.
Due at application or within 3 business days if mailed.
Counseling Handbook on Adjustment Rate Mortgages (CHARM), TILA - Section 19
Must he disclosed prior to charging any non-refundable fee.
Informs the borrower of risks and advantages of ARMs in general.
Due at application or within 3 business days if mailed
Must be retained 2 years.
Early ARM Disclosure, TILA - Section 19
Must be disclosed prior to charging any non-refundable fee.
Informs the borrower of the specifics of their ARM.
Due at application or within 3 business days if mailed.
Must be retained for 2 years.
Initial Truth in Lending Statement (Initial TIL), TILA
Informs borrower of estimated finance costs for open-end loans.
Due at application or within 3 business days if mailed.
Must be retained for 2 years.
What You Should Know About Your HELOC (When Your Home Is on the Line), TILA
Educated borrower in the structure of a HELOC and shopping for a HELOC.
Due at application or within 3 business days if mailed.
Must be retained for 2 years.
Loan Estimate (LE), TILA - TRID
Provides estimated finance and settlement costs for closed-end loans.
Due at application or within 3 business days if mailed.
Must be retained 3 years.
Home Loan Toolkit (Special Information Booklet), TILA
Only for purchase transactions.
Educated the borrower on the home buying process and what to expect.
Should be provided at earliest possible time OR delivered separately at application (or within 3 business days if mailed).
Must be retained for 2 years.
Right to Receive an Appraisal, ECOA - Valuation Rule
Informs borrower if they get an appraisal done, then they get a copy of that appraisal promptly upon completion or 3 business days prior to consummation at the latest.
Due at application or within 3 business days if mailed.
Notice of Action Taken (Adverse Action Notice - For Credit being Denied), ECOA
It lets them know whether or not their loan has been approved or denied, or other actions that may need to be taken or other information that may be needed to allow the lender to make a credit decision.
Due 30 days from application or specific action for credit approved or counteroffer made, credit denied, or incomplete application. 90 days from application or specific action if the credit offer/counteroffer is unused or not accepted.
Must be retained for 25 months.
Notice of Right to Receive Credit Score, FCRA/FACTA
Informs borrower of their credit score as well as factors that make up the score and how to get more information about their credit report.
Due as soon as reasonably practical once the credit score has been obtained, typically this is at application.
Initial Privacy Notice, Gramm Leach Bliley Act - Regulation P
It explains what information the institution gathers, where this information is shared, and how the institution safeguards that information, as well as hoe to opt-out if certain aspects.
Due prior to business relationship being established.
Initial Escrow Statement, RESPA - Section 10
Explains the amount needed for escrow and breaks down each payment going into and coming out of the escrow for the upcoming year.
Sue at closing it within 45 calandra days of escrow account being established.
HUD - 1 Settlement Statement (HUD-1), RESPA
Provides final settlement costs for open-end loans.
Due at closing (or - day prior if requested).
Must be retained for 5 years.
Final Truth in Lending Statement (Final TIL), TILA
Informs borrower of final finance costs for open-end loans.
Due at closing (or 1 day prior if requested).
Must be retained for 2 years.
Closing Disclosure (CD), TILA - TRID
Informs consumers if all final costs for closed-end loans.
Due 3 business days prior to consummation.
Must be retained for 5 years.
Home Ownership Equity Protection Act (HOEPA Disclosure/Covered Loan Notice), TILA - Section 32
For high-cost loans.
Informs borrower about their APR and includes a statement of no obligation (SONO).
Due 3 business days prior to consummation.
Must be retained for 2 years.
Notice of Right to Rescind (Notice of Right to Cancel), TILa - Section 23
For refinances on primary transactions, HELOCs, and reverse mortgages.
Informs all parties with ownership interest of right to rescind for 3 full business days after closing (each owner receives 2 copies).
Due at closing.
Must be retained for 2 years.
Notice if Right to Cancel PMI (PMI Disclosure), Homeowners Protection Act (PMI Cancellation Act)
Informs borrower they can request to cancel their PMI on conventional loans once they hit 80% LTV and the conditions needed to cancel it.
Due at closing.
Initial Interest Rate Adjustment Disclosure, TILA - Section 36
Information about the servicer, alternatives to avoid paying the new rate, the effective date of the new rate, new payment amount, and any changes to loan terms.
Servicer must send out 210-240 days prior to rate adjustment.
Must be retained for 2 years.
Ongoing Interest Rate Adjustment Disclosure (Subsequent Interest Rate Adjustment Disclosure), TILA - Section 36
Information about the servicer, alternatives to avoid paying the new rate, the effective date of the new rate, new payment amount, and any changes to loan terms.
Servicer just send out 60-120 days prior to rate adjustment.
Must be retained for 2 years.
Notice of Transfer Statement (NTS), RESPA - Section 6
Informs the borrower their loan is being transferred to a new servicer.
15-15-60 Day Rule
Old servicer must send out 15 days prior to transfer, new servicer must send out within 15 days after transfer, and no late fees can be charged for 60 days.
Annual Escrow Statement, RESPA - Section 10
Detects overages and shortages. If there is an overage $50 or more than the overage must be returned to the borrower. If there is a shortage, it lets them know how to rectify.
Due annually within 39 days of annual escrow account analysis.
Annual Privacy Notice, GLBA - Regulation P
It explains what information the institution gathers, where this information is shared, and how the institution safeguards that information, as well as how to opt-out if certain aspects.
Due annually.
