Mortgage Disclosure Improvement Act (MDIA) ~ FAQ
The Mortgage Disclosure Improvement Act (MDIA) went into effect on July 30, 2009.
To assist with the compliance of this act, Direct Mortgage, Corp (DMC) has identified 3 key areas to focus on. We have also compiled a list of questions you might have, along with their answers.
3 Key Areas of Focus
100% Complete MDIA Compliance Solution™
Direct Mortgage provides you a 100% complete MDIA compliance solution™ for free.
Additional Questions and Answers:
How can I view the official interpretation of the Mortgage Disclosure Improvement Act?
Do brokers need to use DMC’s disclosures?
Is the borrower required to sign the disclosures sent by DMC?
Electronic signatures prove borrower receipt of disclosures and allows for the immediate collection of fees, whereas sending the disclosures without signing them requires a waiting period of three days.
How soon must disclosures be sent following a trigger event?
What triggers the initial disclosure requirement?
What triggers the redisclosure requirement?
What happens if a disclosure or redisclosure is not sent within the required time?
When is a loan automatically withdrawn?
Loans can also be manually withdrawn by using the “Withdraw” link in the Tracking tab of the loan application.What happens to the rate lock when a loan is withdrawn?
How is a loan reinstated?
The Reinstatement of a loan will trigger a new 3 day disclosure requirement event.
Is it possible to have redisclosures automatically sent to the borrowers?
Is a redisclosure event triggered if the APR goes down?
If I make a change to a fee, how will I know if a redisclosure is necessary?
Is there a place in DirectWare to view the loan’s APR?
What are all the fees that affect the APR?
Here is a list of fees considered pre-paid finance charges (PFC). Note that these are all fees paid by the borrower and can affect the APR.
Will you notify me before a disclosure event is triggered?
How will I know how much time I have before disclosures or redisclosures have to be sent?
Is there any additional help you provide related to disclosure?
How do I send Disclosures?
The required Early Disclosure email that is sent to the borrower is part two of two emails sent to the borrower when sending the eSign Borrower Disclosures invitation. The email has the required disclosures attached and password protected with the signers’ social security number.
This email makes it extremely easy for you to send the required disclosures, and will save you money as you do not have to print or mail the disclosure documents.
We encourage all borrowers to electronically sign the disclosures. While electronically signing is not required prior to submitting the loan, it is necessary for the file to pass underwriting. Exceptions are considered on a case-by-case basis.
Electronic signatures proves borrower receipt of disclosures and allows for the immediate collection of fees, whereas sending the disclosures without signing them requires a waiting period of three days.
How are the disclosures signed with eSignatures?
Is there a way to collect fees sooner from borrowers?
Practice using eSignatures with your pre-qualifier loan within DirectWare®.
Automation: Please note that our systematic & automated processes are designed to assist in Early Loan Disclosure Compliance – but should never be used to replace the need for a Loan Officer to review, comply, and adhere to all loan compliance requirements.
Contact Broker Support with additional questions: 800-924-3884 or BrokerSupport@DirectCorp.com