HPA – At a high level, what are the basic disclosure and notice requirements applicable to residential mortgage transactions and residential mortgages?

Compliance > Homeowners Protection Act
Q:  At a high level, what are the basic disclosure and notice requirements applicable to residential mortgage transactions and residential mortgages? 
 
A:    The Act requires the lender in a residential mortgage transac­tion to provide to the borrower, at the time of consummation, certain disclosures that describe the borrower’s rights for PMI cancellation and termination. A borrower may not be charged for any disclosure required by the Act.
 
Initial disclosures vary, based upon whether the transaction is a fixed rate mortgage, adjustable rate mortgage, or high-risk loan.
 
The Act also re­quires that the borrower be provided with certain annual and other notices concerning PMI cancellation and termination. Residential mortgages are subject to certain annual disclosure requirements.
 
 
This Q&A was based on information contained in the FDIC’s Compliance Examination Manual for Homeowner’s Protection Act – September 2015, which may be found here:  https://www.fdic.gov/regulations/compliance/manual/5/v-5.1.pdf
 

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