Disclosures Flashcards
Mortgage Servicing Disclosure Statement
Required under which Act and when is it due?
Required by RESPA
Due 3 business days after completion of a loan application
Now appears on page 3 of the loan estimate
Servicing Transfer Statement
Required under which Act and when is it due?
Required by RESPA
Due 15 days prior to the effective date of the transfer
Disclosures Related to Reverse Mortgages
Required under which Act and what does it disclose?
TILA requires that a loan cost disclosure form be provided
It discloses the total annual cost, which incorporates:
- Upfront costs: origination fees, 3rd party closing fee, any upfront mortgage insurance premium
- Interest
- Ongoing charges
What is IRS Form 4506-T for?
Allows the lender to verify with the IRS that the income forms supplied by the borrower matches those in the possession of the IRS
What is IRS Form 8821 for?
Allows a taxpayer to authorize the right of any person or company to review their personal tax information from prior returns
What is Fannie Mae Form 1005 for?
Authorizes borrower employer to provide info regarding the position held, income earned, and the probability of continued employment
Balloon Payment Notice
Required under which Act and when is it due?
Required by HOEPA
due 3 business days prior to closing date
Notice Regarding Insurance Premiums
Required under which Act for what type of loan?
Required by HOEPA for mortgage refinances
*If the amount borrowed includes financing to cover option insurance products.
Prevents “Packing” costs of unnecessary insurance in high cost home loans
Notice that completion of loan application and receipt of disclosure does not obligate borrower to complete transaction
Required under which Act and when is it due?
Required by TILA
due 3 business days after receiving an application
Notice of Right to Receive Appraisal Report
When must lender provide notice?
Creditors must provide loan applicants with notice no later than 3 business days after receiving an application for credit that will be secured by a first lien on a dwelling
Notice Regarding Monitoring Programs
Required under which Act and when is it due?
Required by ECOA
due when obtaining information on race, ethnicity, sex, marriage, and age
Notice of Right to Rescind
Required under which Act and when is it due?
Required by TILA
due at the time of closing, in transactions NOT related to a home purchase or to a refinance with the same lender that original made the loan
Notice of Right to Cancel PMI
Required under with Act and when is it due?
Required by the Homeowners Protection Act
Due at the time of closing and required in annual disclosures
Notice of Right to Receive Credit Score & Dispute Accuracy
Required under which Act and when is it due?
Required by FACTA
Due during the loan transaction
Notice of Right to Financial Privacy & Right to Opt Out of Sharing Personal Info
Required under which Act and when is it due?
Required by GLB Act
Due at the time of an established business relationship (time of application)
