Mortgage Disclosure Improvement Act of 2008 (MDIA) Update

The MDIA is part of the Housing and Economic Recovery Act of 2008 (HERA) that became law on July 30, 2008.  The MDIA requirements discussed below became effective July 30, 2009.

  • Borrower(s) are prohibited from paying any upfront fees, other than a reasonable credit report fee, until after they have received the initial Truth-in-Lending (TIL) Disclosure. The initial TIL Disclosure will be considered received by the borrower three (3) business days after it is registered with the lender.
  • The new rules prohibit the lender from closing the loan until at least seven (7) business days after the initial TIL Disclosure is mailed or delivered.
  • If the APR at loan closing is more than .125% higher than the APR in the most recent TIL provided to the borrower(s), TILA requires that the borrower receive a new TIL Disclosure at least three (3) business days before loan closing.
  • Waiving the Waiting Period – Fannie Mae and FHA will not allow the waiving of any waiting period. This includes the seven (7) day period for the initial TIL and the three (3) day period for the re-disclosure. There are no exceptions to this policy.

    What does all this mean for you as a Buyer or Seller?

    Fill out the form below for an immediate answer to this important question!
New MDIA Disclosure Required
Contact Information
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Questions
When are you planning on buying?
Are you currently working with a Realtor?
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Do you need assistance in finding a new home?
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Are you pre-qualified by a lender?
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