Many people are confused by the various disclosures that are signed just to get the purchase or refinance process started. Please keep in mind that these disclosures are only estimates. If there are any pertinent changes, you will sign a revised copy at closing with your loan documents. Below you will find a quick summary of the purpose of each form:
Anti-Steering Diclosure: We are required to provide you at least three loans options – the loan with the lowest interest rate, the lowest origination costs, and the lowest interest rate without risky features – for types of loans for which you have expressed an interest.
Appraisal Payment Responsibility and Right to Receive Appraisal Disclosure: An appraisal will be ordered on your behalf. You will be responsible for payment despite the outcome of your loan. You have the right to receive a copy of your appraisal report, and you may choose the method(s) of delivery that is best for you.
Borrowers' Certification and Authorization: On this form you certify that all of the information is true and complete, that you made no misrepresentations in the loan application, and that you did not omit any pertinent information. You also allow us to release your information to the lender and other applicable parties as part of the loan process. Additionally, you allow us to verify the information you have previously provided.
Borrower Signature Authorization: This form allows us to pull a copy of your credit report and verify past and present income, asset, housing, and credit information about you.
Disclosure Notices: This form includes an affidavit of occupancy (whether you will live in the property being financed), that you were not forced to use any particular insurance agency, that you will be informed in a timely manner if your application is denied, and that you will be charged a full month interest if you pay off your loan mid-month (FHA loans only).
Election to Set Up an Impound Account: This form outlines the pros and cons of choosing an impound account.
Equal Credit Opportunity Act: We will not discriminate against you based on race, age, marital status, sex, or other additional criteria.
Good Faith Estimate: The GFE provides you with an estimate of loan fees and outlines your loan terms.
Fee Details and Summary: This fee worksheet details all fees listed on the GFE and shows how much cash you will need to close escrow.
Intent to Proceed with Application: On this form you express your intent to proceed with the loan terms as reflected on the referenced Good Faith Estimate.
Mortgage Loan Disclosure Statement: The MLDS reflects an estimate of charges associated with your loan as well general information about your proposed loan such as interest rate, balloon payment, prepayment, and whether an impound account is being set up.
Mortgage Loan Origination Agreement: This form briefly outlines how our office is compensated for the service rendered as your mortgage broker.
Mortgage Broker Fee Agreement: This form discloses the fee that will be paid to our office for originating your loan.
Notice to the Home Loan Applicant Credit Score Information Disclosure: This form lets you know your credit score and the top factors affecting your scores. It also provides you with contact information for each of the three credit bureaus.
Patriot Act Information Disclosure: As a result of the USA Patriot Act we are required to obtain and document certain information to verify you are not named on the governments SDN and Blocked Persons List.
Request for Transcript of Tax Return (IRS Form 4506T): The lender will request a copy of your tax transcripts prior to funding your loan to verify the tax returns provided are exact copies of those which were filed.
Servicing Disclosure Statement: We will not and have not serviced any loans. Your loan servicing will be handled by the lender that funds your loan or their third party designee.
Settlement Services Provider Statement: This form details the escrow/title fees listed on your GFE as well as any other services you are able to shop for.
The Housing Financial Discrimination Act of 1977 Fair Lending Notice: Similar to the ECOA, this form states we will not discriminate against you for the reasons listed above with the addition of neighborhood or geographic characteristics or conditions.
Uniform Residential Loan Application: The Loan Application provides all of your basic information, such as name, date of birth, phone number, address, employment and income information, asset information, and real estate information as applicable.
Written List of Service Providers: This form discloses certain providers whose fees we have quoted on the Good Faith Estimate.
Additional Disclosures from the Federal Reserve Board:
Consumer Handbook on Adjustable Rate Mortgages
Home Mortgages: Understanding the Process and Your Right to Fair Lending