MDIA Disclsosures

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Question:

Regarding the MDIA, on what form should the disclosures to inform consumers that they are not obligated to complete transaction simply because disclosures were provided be located/disclosed?

Answer:

The new disclosure must be given as part of the early Truth in Lending disclosures for mortgage transactions subject to RESPA. Here is the requirement as stated in Reg. Z, Sec. 226.19(a)(4):Notice. Disclosures made pursuant to paragraph (a)(1) or paragraph (a)(2) of this section shall contain the following statement: “You are not required to complete this agreement merely because you have received these disclosures or signed a loan application.” The disclosure required by this paragraph shall be grouped together with the disclosures required by paragraphs (a)(1) or (a)(2) of this section.

First published on BankersOnline.com 9/28/09