Disclosures Flashcards
What is ABA/AfBA and when is it due?
Affiliated Business Arrangement disclosure - Informs the consumer of the business arrangement between two parties.
It is due AT TIME OF REFERRAL
What is CHARM and when is it due?
Consumer Handbook on Adjustable Rate Mortgages - educates the consumer on risks and advantages of ARM’s.
It is due AT APPLICATION or prior to the payment of a non refundable fee
What is Early ARM and when is it due?
Early ARM - educates the consumer on the specifics of their ARM (rate, adjustments, caps, index, etc.).
It is due AT APPLICATION or prior to the payment of a non refundable fee
What is the Home Loan Toolkit and when is it due?
Home Loan Toolkit - Informs the consumer of the mortgage process.
It is due AT APPLICATION or within 3 business days if mailed
What is the Homeownership Counseling Organizations List and when is it due?
Homeownership Counseling Organization List - Informs the borrower of local counseling organizations(Must include at least 10).
It is due AT APPLICATION or within 3 business days if mailed
What is the Initial Privacy Notice and when is it due?
Initial Privacy Notice - explains what information is gathered, where this information is shared, and how it is safeguarded.
It is due to a CUSTOMER no later than when a CUSTOMER relationship is established,
It is due to a consumer before any non-public personal information(NPPI) is disclosed to any non-affiliated 3rd party by an institution(If applicable).\
If the institution does not provide information to non-affiliated 3rd parties, then the privacy notice is not required
What is the Annual Privacy Notice and when is it due?
Annual Privacy Notice - contains the same information as the Initial Privacy Notice, as well as a notice of the right to opt-out of information being shared and an explanation of how to do so.
Due ANNUALLY.
What is the Intent To Proceed and when is it due?
Intent to Proceed - it means the consumer has looked over the information provided (Specifically the Loan Estimate) and wants to move forward with the process.
It is due PRIOR TO THE CHARGE OF ANY FEE (with the exception of the credit report fee.)
What is the Loan Estimate and when is it due?
Loan Estimate - a 3 page document containing an estimate of credit terms and closing costs.
It is due AT APPLICATION
What is the MSDS and when is it due?
Mortgage Servicing Disclosure Statement - Informs the borrower that their loan may be assigned to another company for servicing.
It is due AT APPLICATION or within 3 days (Excluding legal holidays, Saturdays, and Sundays)
THIS IS NOT BUSINESS DAYS^^^^^^^^^^^^^^^
What is Notice of Action Taken?
Notice of Action Taken - notification by the creditor whenever an action is taken or a decision is made about their credit application status through disclosures.
What are the 4 different types of Action that can be taken on a loan application and when are they due?
Credit is Approved/ Counteroffer made - It is due within 30 DAYS OF APPLICATION
Application is incomplete - it is due 30 DAYS AFTER REQUEST FOR ADDITIONAL APPLICATION INFORMATION
Credit offer is unused/ Not accepted by the Applicant - It is due 90 DAYS AFTER OFF/COUNTEROFFER
Credit is Denied(AKA Adverse Action Notice) - It is due within 30 DAYS OF APPLICATION
What is Notice of Right to Receive an Appraisal and when is it due?
Notice of Right to Receive an Appraisal - It notifies the consumer of their right to receive an appraisal on the property they are trying to purchase.
It is due AT APPLICATION or within 3 business days if mailed
