Brokers are not required to issue an initial TIL or initial Servicing Disclosure Statement.
In accordance with RESPA and TILA, we will not issue a finding to brokers if these documents are not in the file. Check out the regulations:
- Servicing Disclosure Statement: Delivery. The lender, table funding mortgage broker, or dealer that anticipates a first lien dealer loan shall deliver the Servicing Disclosure Statement within 3 business days from receipt of the application by hand delivery, by placing it in the mail, or, if the applicant agrees, by fax, e-mail, or other electronic means. In the event the borrower is denied credit within the 3 business-day period, no servicing disclosure statement is required to be delivered. If co-applicants indicate the same address on their application, one copy delivered to that address is sufficient. If different addresses are shown by co-applicants on the application, a copy must be delivered to each of the co-applicants. RESPA §3500.21.c
- TILA Disclosure Requirements. The creditor shall make the disclosures required by this subpart clearly and conspicuously in writing, in a form that the consumer may keep. The disclosures required by this subpart may be provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act). TILA 226.17
How does TILA define who is a Creditor?
A creditor is a person who regularly extends consumer credit that is subject to a finance charge or is payable by written agreement in more than four installments (not including a down payment), and to whom the obligation is initially payable, either on the face of the note or contract, or by agreement when there is no note or contract. TILA 226.2(17)
*Don’t forget to check with your investors and state licensing authority regarding their rules and regulations.
Contact us to learn more about mortgage QC audits and compliance