Mortgage Disclosure Improvement Act of 2009 (MDIA) Reminder

Participating Lenders are reminded that some provisions under the Mortgage Disclosure Improvement Act of 2009 (MDIA) take effect for mortgage loan applications received on or after July 30, 2009.

Summaries of the new rules from the FDIC:
FIL-26-2009
Supplement to FIL-26-2009

Please note the following highlights:

• Initial disclosures must be provided to applicants within three (3) business days of loan application (“business days” for this purpose is any day the Participating Lender is open for business to the public for carrying on substantially all of its business functions).
  
  
• No fees can be collected during this three (3) business day waiting period (except for a reasonable credit report fee).
  
  
• There is a seven (7) business day waiting period once the initial disclosure is provided before closing a home loan (“business days” for this purpose is all calendar days except Sundays and legal public holidays).
  
  
• If the Annual Percentage Rate (APR) in the initial good faith estimate of required disclosures is no longer accurate within a.125% variance, then the Participating Lender must re-disclose and wait yet another three (3) business days before closing on the transaction (“business days” for this purpose is all calendar days except Sundays and legal public holidays).
  
  
• Both the early truth in lending disclosures (Initial TIL) and the corrected truth in lending disclosures (Final TIL) must contain the following notice clearly and conspicuously:
  
  "You are not required to complete this agreement merely because you have received these disclosures or signed a loan application."
  
  
• Participating Lenders should carefully schedule all required disclosures to ensure there are no closing delays.

Participating Lenders are encouraged to consult with their Compliance and/or Legal Departments with respect to compliance with the new MDIA and any other laws and regulations concerning the Mortgage Loans which they originate.

Please contact the Home Finance division with any questions.

303.297.7376 or 1.888.320.3688 Denver
970.241.2341 or 1.800.877.8450 Western Slope

Thank you,
CHFA Home Finance