MRG Document Technologies, a provider of mortgage document preparation software and compliance technology, has developed the forms needed to comply with upcoming 2011 regulations that mandate changes to both the Truth in Lending Act (TILA) and risk-based pricing disclosures. Both updates are meant to provide consumer clarification in regard to loan decisioning and final terms.
By Jan. 31, 2011, lenders must implement the updated TILA disclosure, which provides borrowers with certain information about interest rates and payment changes, in a tabular format, as well as a statement that consumers are not guaranteed to be able to refinance their transactions in the future. The interest-rate and payment summary tables replace the payment schedule previously required as part of the TILA disclosure for mortgage transactions, MRG explains.
The risk-based pricing provisions of the Fair and Accurate Credit Transactions Act of 2003 take effect Jan. 1, 2011, and require lenders to provide borrowers with a notice containing the credit-score disclosure and additional context for the credit-score disclosure.
SOURCE: MRG Document Technologies