MRG Electronic Disclosures Reflect Reg. Z Changes

cument Technologies has made its eConsent electronic disclosure delivery system available to help lenders comply with changes to Regulation Z that take effect July 30. The changes implement the Mortgage Disclosure Improvement Act of 2008, resulting in an expansion of the Truth in Lending Act (TILA) disclosures. The new changes expand the scope of TILA disclosures for mortgage transactions to include the need for disclosures for refinances and for mortgage loans on dwellings other than borrower's primary residence, in addition to the disclosures already required for purchase and initial construction loans. Revised disclosures are required if the annual percentage rate changes to outside of the tolerance during the loan process. As a result of re-disclosure, lenders must delay closings for three additional days, for a total of six days, while they wait for borrowers to receive the revised disclosures. MRG says its eConsent system provides lenders with proof that borrowers received re-disclosures on the day they were delivered if the borrowers consent to the re-disclosure. MRG supplies the lenders with verifiable reports of when the borrower actually consented. This can shorten the disclosure delivery time, with closings occurring three days after the delivery date instead of six, the company says. Marsha Williams, an attorney at MRG, notes the benefit of a faster closing process. "For lenders, it locks in interest rates, prevents borrowers from switching to another lender and generates interest sooner," Williams said in a company statement. "By delivering the revised disclosures electronically, borrowers close their loans sooner." SOURCE: MRG Document Techn


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