Can we use a single "Disclosure Acknowlegement" for all lending disclosures? -- Fidelity

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Can we use a single "Disclosure Acknowlegement" for all lending disclosures?
by Vennie Blanchett

Fidelity National Financial

Question: For the upfront lending disclosures (e.g., Servicing Transfer Disclosure, ARM disclosures, etc.) for which the Bank is required to keep a customer-signed acknowledgement of receipt, can the Bank substitute a "Disclosure Acknowledgement" form which the customer signs acknowledging receipt of all the disclosures? Or do the regulations require that the disclosures be individually signed?

Answer: I don't believe you can lump the Possible Transfer of Servicing disclosure with other documents, because the information disclosed reflects the lender's practices of selling loans. This document is in a specified format and is also the one and only document that is required to be signed at time of a face to face interview (other than FHA agency docs). The disclosures that are "cookie cutter" disclosures such as ECOA, Anti-Coercion, Appraisal Notice, etc can be lumped together because they do not reflect the lender's personal practices. They are just stating language that is required to be disclosed to all applicants. This would not apply to FHA/VA docs.

Although not endorsed by me, the ARM disclosure is not required to be signed by the applicant, and can also be grouped as a "cookie cutter" disclosure with an acknowledgement for the disclosure. The problem I see with grouping the ARM disclosure in this manner is if there is a question as to whether or not the correct disclosure was given to the applicants. Keeping a copy of it in the file is a "cya" for the lender.

Hope this is what you were looking for.

First published on BankersOnline.com 9/2/03

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