TILA—Mortgage Disclosure Improvement Act (MDIA)

Question 1

The Mortgage Disclosure Improvement Act is under which greater law?

Answer 1

TILA

Question 2

What is the 3/7/3 Rule of the Mortgage Disclosure Improvement Act (MDIA)?

Answer 2

1. ) Initial disclosures must be delivered within 3 Business Days of receiving of a completed application.
2. ) Once disclosures have been delivered/mailed, the earliest a loan can close or be consummated, is on the 7th Business Day.
3. ) If a Redisclosure is required, than the corrected disclosure must be deliverd/mailed in at Least 3 Business Days.

Question 3

According to the MDIA, what are reasonable reason(s) why a Redisclosure may be given?

Answer 3

A Redisclosure would be required if the APR, or rate changed.

Question 4

According to the MDIA, what is considered a variance of the APR that would trigger the need of the a Redisclosure for regular transactions and irregular transactons?

Answer 4

1. ) Regular Transactions (30yr fixed) is up or down 1/8% (.125).
2. ) Irregular Transactions (Not a 30yr fixed) is up or down 1/4% (.25).

Question 5

According to the MDIA, What is the only situation that the 3 day waiting period of a Redisclosure may be waived?

Answer 5

If there is a “Bona Fide Financial Emergency,” to be determined by the lender.

Question 6

According to TILA, what is a Business Day—and the exception?

Answer 6

All calendar days except Sundays & legal public holidays. (The “initial” Loan Estimate is an exception to this rule.)