Initial Disclosures Flashcards
RESPA - Section 8
ABA/AfBA
Affiliated business arrangement disclosure
Informs borrower they don’t have to choose their preferred affiliate, lets them know the estimated cost, and shows a description of the business arrangement. This is due at time of referral and is kept for five years from settlement date.
RESPA - Section 6
MSDS
Mortgage servicing disclosure statement
Informs borrower of the likelihood that the loan will be transferred to a new servicer. Due at completed application or within three days and is kept for five years from settlement date.
RESPA
GFE
Good faith estimate
Provides estimated settlement cost for open end loans. This is due at completed application or within three business days and is kept three years from settlement date.
RESPA
Homeownership Counseling Organizations List Disclosure
Provides at least 10 homeownership counseling organizations in their area to get homeownership counseling. Reverse mortgages and timeshares are exempt. This is due at completed application or within three business days.
TILA - Section 19
CHARM
Consumer handbook on adjustable rate mortgages
Informs the borrower of risks and advantages of ARMs in general, and must be disclosed prior to charging any nonrefundable fee. This is due at completed application or within three business days and is kept for two years.
TILA - Section 19
Early ARM Disclosure
Informs the borrower of the specifics of their ARM and must be disclosed prior to charging any nonrefundable fee. This is due at completed application or within three business days and is kept for two years.
TILA
Initial TIL
Initial Truth in Lending Statement
Informs borrower of estimated finance cost for open end loans. This is due at completed application or within three business days and is kept for two years.
TILA
When your home is on the line
What you should know about your HELOC
Educates borrower on the structure of a HELOC and shopping for a HELOC. This is due at completed application or within three business days and is kept for two years.
TILA - TRID
LE
Loan Estimate
Provides estimated finance and settlement cost for closed end loans. This is due at completed application or within three business days and is kept for three years.
TILA
Special Information Booklet
Home Loan Toolkit
Educates the borrower on the homebuying process and what to expect. This is only used for closed end purchase transactions and must be delivered separately from other disclosures. This is due as early as possible in the home or mortgage shopping process and no later than at completed application or within three business days. This is kept for two years.
FCRA/FACTA
Notice of Right to Receive Credit Score
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. This is due as soon as reasonably practical after using a credit score and no later than at completed application, or within three business days.
ECOA - Valuation Rule
Notice of Right to Receive an Appraisal
Informs borrower if they have an appraisal completed on the property, then they have the right to receive a copy of the appraisal report after it is completed. Notice of right to receive an appraisal is due at application or within three business days. Copy of appraisal is due properly upon completion or no later than three business days prior to consummation.
ECOA
Adverse Action Notice (for denied credit)
Notice of Action Taken
It lets the borrower 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. 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 for a credit offer/counter offer is unused or not accepted. This is kept for 25 months.
Gramm Leach Bliley Act - Regulation P
Initial Privacy Notice
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 of certain aspects. This is due no later than when a customer relationship is established (at consummation)
