The truth in lending document shows what your Annual Percentage Rate (APR) is for the proposed loan.  The APR is calculated based on your mortgage rate plus certain closing costs and any upfront interest due. Your APR will almost always be higher than your mortgage note rate because the APR factors in closing costs.

Shown below are items that affect the APR.
Note: these fees paid by the borrower and can affect the APR.

To help clear up MDIA, we have provided a summary of the key points to the policy;

1) Upfront fees (with the exception of reasonable credit report fees)– cannot be collected by any mortgage lender, bank, or broker prior to you receiving your initial Good Faith Estimate (GFE) of closing costs and Truth in Lending (TIL) statement. If anyone asks you for payment of any kind before you receive your disclosures, they may violate MDIA.

2) Seven day waiting period – from the time initial disclosures are mailed (including email), a mandatory seven business day waiting period is required prior to a loan closing. This is designed so that you have adequate time to review your disclosures and be sure that the loan is right for you.

3) Corrected Disclosures – if the final APR for your loan is 0.125% higher or lower for a fixed rate loan or .250% higher or lower for an adjustable rate loan, your mortgage provider is required to provide you with updated disclosure documents. Once these have been provided to you, a new three business day waiting period is required before you can close. Once again this is designed to ensure that you have adequate time to make an informed decision. Please note, if the corrected disclosures are not signed and returned to the mortgage provider, the waiting period would be six business days instead of three.

Many institutions have voiced concern about MDIA, however we embrace this new act as we believe it allows consumers to have a better understanding of the costs associated with their new loan. We have always provided our customers with a Good Faith Estimate upfront before you do business with us. We primarily use email to transmit our initial disclosures to you.

Once you receive them,  we encourage you to review, sign, and return by fax to (727) 819-0090 or by reply.

During the loan process, we will provide you with updates to your GFE. Once we receive your preliminary settlement statement from the closing agent, we will compare that to our initial GFE. We will update your GFE to match those items on your preliminary closing statement and re-send together with the closing statement so you can review. The 3- day requirement starts again if there are any changes that affect your APR by more than 0.125%.

This is how MDIA (Mortgage Disclosure Improvement Act) will affect your loan and how we process each loan application.

Please contact us with any questions.

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