Mortgage Loan Disclosure Statement Availability

When to Make Mortgage Loan Disclosure Statement Available

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Question

When must a bank make its mortgage loan disclosure statement available?

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Explanations

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A. B. C. D.

B

The correct answer to this question is not explicitly provided in the given options. However, to provide a comprehensive answer, I will explain the requirements for mortgage loan disclosure statements under federal regulations.

Under federal regulations, banks and other lenders are required to provide mortgage loan disclosure statements to borrowers at certain key points during the loan origination process. Specifically, lenders must provide borrowers with a Loan Estimate within three business days of receiving a completed mortgage loan application. The Loan Estimate is a standardized form that provides detailed information about the loan, including the interest rate, fees, and estimated monthly payments.

After the borrower receives the Loan Estimate, the lender must provide a Closing Disclosure at least three business days before the loan closing. The Closing Disclosure is another standardized form that provides detailed information about the final terms of the loan, including the final interest rate, fees, and monthly payments.

In addition to providing these disclosures to borrowers, lenders must also make these documents available to their federal supervisory agency upon request. This means that the correct answer to the given question is A. Only when requested by its federal supervisory agency.

It's worth noting that while lenders are not required to make these disclosures available to members of the public on an ongoing basis, they are required to maintain copies of these documents for at least three years after the loan closing. This means that if a member of the public requests a copy of these documents within three years of the loan closing, the lender must provide them with a copy. However, this is not an ongoing obligation to make the documents available to the public.