Redisclosure Confusion

Question:

If the APR changes during the application process, and the APR actually decreases by more than .125%, is a new disclosure still required to be sent? Are the redisclosure requirements for primary residence only or for all dwellings? I've went through a few webinars, but this issue is still confusing.

Answer:

Concerning the over disclosure issue: read our blog from 9/30/09 on this topic. MDIA applies to all closed-end consumer mortgage loans subject to RESPA. This includes primary, secondary, vacation homes and rental properties if the loan is for consumer purposes. Refer to Section 229319(a)(1)(i) for more information.

First published on BankersOnline.com 3/15/10