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.