I just read an opinion on Reg Z that differs from what our workpapers direct us to look for in an audit. It stated that early diclosures were not needed for refinance transactions. However, our workpapers state that according to 226.19 early disclosures should be given on any RESPA related transaction, which would cover refinances. Which interpretation is correct?

Thanks!

§226.19: Certain Residential Mortgage and Variable-Rate Transactions (01/01/98)

(a) Residential mortgage transactions subject to RESPA --

(1) Time of disclosures. In a residential mortgage transaction subject to the Real Estate Settlement Procedures Act (12 USC 2601 et seq.) the creditor shall make good faith estimates of the disclosures required by §226.18 before consummation, or shall deliver or place them in the mail not later than three business days after the creditor receives the consumer's written application, whichever is earlier.

Go to 226.2 for the definition of a residential mortgage transaction.

If this doesn't answer your question then repost.

Cooper -

To add to Dan's reply, if you don't already have a Real Estate Loan Matrix there is a good one here (unfortunately I don't have the link in the tools section) - The matrix has been a life-saver for our set-up processor as well as our Operations Center.

http://www.bankerscompliance.com/

Click on the above link and you can download the Real Estate Matrix 6.1. (I'm not sure if this is the same one Miss Kitty is referring to, but it is a good reference.)

Yes it is Dan, and thank you - I didn't notice until now that it had been revised recently.