Truth-In-Lending (TIL)
		MDIA Disclosure Requirements
		Updated: September 24, 2009. This replaces all previous MDIA communications.
		Summary of MDIA: The Federal Reserve Board has published final amendments to Regulation Z to implement the requirements of the Mortgage Disclosure Improvement Act (MDIA), which was passed as part of the Housing and Economic Recovery Act of 2008 (HERA).
	Effective Date and Applicability: These new rules are effective for applications taken on or after July 30, 2009, and they apply to all closed-end transactions, regardless of loan purpose or lien position, involving a borrower’s principal or secondary dwelling(s). Investment properties are excluded.
	Collection Of Fees - Restriction:  Other than a reasonable credit report fee, the originator, lender, nor any other person (including an appraiser or appraisal management company) may collect a fee from the borrower before the borrower receives the initial disclosures. If the initial disclosures are mailed to the borrower, the borrower is deemed to have received the disclosures three business days after they are placed in the mail.
	Early TIL: The initial or early Truth-In-Lending (TIL) disclosure must now be provided to the borrower(s) for all closed-end transactions, regardless of the loan purpose or lien postion. This includes but is not limited to purchase money loans and refinances; first lien and subordinate lien loans; and principal dwellings as well as second homes.
	3 Day Rule - Initial (Early) Disclosures: The existing requirement that initial disclosures be sent to the borrower(s) within the three days of application remains virtually unchanged with the exception that the MDIA now applies to the initial (early) disclosure requirement to refinance transaction in addition to purchase money loans. For purposes of providing the initial (early) TIL disclosure a "Business Day" is any day except Saturday, Sunday and federal holidays.
	7 Day Rule: Under the MDIA requirements, the loan cannot close earlier than the seventh (7th) business day after the early TIL is delivered or placed in the mail to the borrower(s). For purposes of calculation this waiting period, "Business Days" mean any day other than Sunday or the statutory federal legal public holidays (the same definition used today to determine what is counted as a "rescission day" under Regulation Z).
	APR Change Outside Tolerance/Corrected Disclosure and Waiting Period: If the APR disclosed on the early TIL later increases or decreases outside the of the tolerance levels in Regulation Z Section 226.22 (see Seconday Market Requirements below), a corrected TIL must be RECEIVED by the borrower(s) no later than three (3) business day before the signing the closing documents. If the corrective TIL is mailed (including any form of mail,or courier, including overnight delivery) the lender (Sierra Pacific Home Loans, Inc.) must allow an extra three business days after the mailing date, in addition to the three business days for borrower(s) review, before signing of the closing documents. For purposes of calculation this waiting period, "Business Days" mean any day other than Sunday or the statutory federal legal public holidays (the same definition used today to determine what is counted as a "rescission day" under Regulation Z).
	APR Change Waiting Tolerance and Other TIL Charges: Within tolerance APR changes, or any other changes to the early TIL still require a final TIL, which can be given to the borrower at the time of signing closing documents, with no three business day waiting period.
		Secondary Market Requirements: In order for a loan to be sold into the secondary market the following requirements must be meet.
		APR tolerance for Corrected Disclosure is .125% increase or decrease in APR. Waiting period(s) will not be waived. Email delivery of disclosures is not allowed.