Mortgage Lending Disclosure Timing Flashcards
SPECIAL INFORMATION BOOKLET
RESPA Timing: At application, or within 3 business days after the application is received or prepared.
Exempt:
• Refinancing transactions;
• Closed-end loans with subordinate liens;
• Reverse mortgages;
• Other federally related mortgage loan whose purpose is not the purchase of 1-4 family residential property.
*Home Equity loans require the brochure - “When You Home is on the Line”
Not required if the credit is denied within 3 business day period.
LIST OF HOMEOWNERSHIP COUNSELING ORGANIZATIONS
RESPA Timing: At application, or within 3 business days after the application is received.
Not required if before the end of the three business day period the lender denies the application or the loan applicant withdraws the application.
Exemptions:
• Reverse mortgages
• Timeshare plans
SERVICING DISCLOSURE STATEMENT
RESPA Timing: At application, or within 3 business days after submission of the application.
Not required if the credit is denied within the 3 business day period.
If co-applicants have the same address, only one is required
GOOD FAITH ESTIMATE
RESPA Timing: No later than 3 business days after application, or information sufficient to complete an application.
RESPA Timing: No later than 3 business days after changed circumstances or borrower’s request for revisions.
*Terms must be available for at least 10 business days from when the GFE is provided.
Exemptions: Not required if the lender denies the application or the applicant withdraws the application within the 3 business day period.
AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE STATEMENT
RESPA Timing: Must be provided at application if the bank requires the use of a particular provider. Must be provided no later than the time of referral.
Must be on a separate piece of paper.
TILA DISCLOSURES
TILA Timing: No later than 3 business days after the bank receives the application.
The disclosures must be provided no later than the seventh day before consummation (may be waived by customer).
If the APR becomes inaccurate, the consumer must receive† a corrected disclosure no later than three business days before consummation (may be waived by customer).
† If mailed, the information is considered to be received 3 business days after it is mailed.
ARM REQUIREMENTS
Only required for ARMs.
TILA Timing: At the time the application form is provided or before the customer pays a non- refundable fee, whichever is earlier.
ARM REQUIREMENTS:
Consumer Handbook on Adjustable Rate Mortgages booklet and a loan program disclosure for each variable-rate program in which the customer expresses interest.
COPY OF ALL APPRAISALS AND OTHER WRITTEN EVALUATIONS
ECOA Timing: Promptly after appraisal completion, or no later than three business days prior to consummation(time requirement may be waived by customer).
Note: Applies to those developed in connection with an application for credit that is to be secured by a first lien on a dwelling.
Applies whether the credit is extended or denied or if the application is incomplete or withdrawn.
NOTICE OF SPECIAL FLOOD HAZARDS
FDPA Timing: Reasonable time before consummation.
Notification must be given when the property securing the loan is in a special flood hazard zone.
NOTICE TO COSIGNER
Regulation AA Timing: Before consummation
Must be in writing either as a separate document or included with the documents evidencing the consumer’s credit obligation.
FINAL TILA DISCLOSURES
Timing: The disclosures must be provided no later than the seventh day before consummation (may be waived by customer).
If the APR becomes inaccurate, the consumer must receive a corrected disclosure no later than three business days before consummation (may be waived by customer).
Note: Varying loan types may require different disclosures such as negative amortization loans or loans with balloon payments.
ADVANCE INSPECTION OF HUD- 1 OR HUD-1A
RESPA: At settlement
Must be used for every RESPA- covered transaction.
INITIAL ESCROW ACCOUNT STATEMENT
RESPA Timing: At settlement, or within 45 calendar days of settlement.
May incorporate into the HUD-1 or HUD-1A or as separate document. Only for loans requiring escrow. Note that all HPML secured by a first-lien require escrow accounts except for certain exempt transactions and certain exempt banks.
*Annual statements are required*
PMI CANCELLATION AND TERMINATION RIGHTS
HOMEOWNERS PROTECTION ACT Timing: At consummation
Disclosures differ for fixed-rate, adjustable rate, and high risk loans.
*Annual disclosure is required*
NOTICE OF RATE ADJUSTMENT WITH CORRESPONDING CHANGE IN PAYMENT
TILA Timing: At least 60 days, but no more than 120 days before the adjusted payment (ARMs)
Disclosure should be sent at least 25 days but no more than 120 days before adjustment when uniformly schedule interest rate adjustment will occur every 60 days or more frequently.
Disclosure should be sent at least 25 days but no more than 120 days before adjustment if the first adjustment occurs within 60 days of consummation.
